IMF-Backed Reforms in Hand Says New Ukraine Finance Minister

10/06/2018 IMF-backed reforms in hand says new Ukraine ﬁnance minister

Ukraine IMF-backed reforms in hand says new Ukraine ﬁnance minister

Oksana Markarova hopes for delayed foreign funding within months

Oksana Markarova, Ukraine's acting ﬁnance minister Roman Olearchyk in Kiev 56 MINUTES AGO

Ukraine’s new acting finance minister said her government hoped to strike an agreement on raising natural gas prices within months so Kiev could unfreeze a $17.5bn IMF assistance package “by autumn”.

In a first interview since taking over, Oksana Markarova gave assurances of continuity of policy and commitment to economic reforms, trying to reassure international investors and officials unsettled by the ousting last week of her predecessor Oleksandr Danyliuk.

Ukraine’s parliament voted to remove Mr Danyliuk, considered a top reformer by the country’s foreign backers, after he fell out with prime minister Volodymyr Groysman.

His ousting came hours after MPs adopted long-delayed legislation to create an anti-corruption court, thereby meeting one of the IMF’s conditions for disbursement of a $2bn aid tranche. A government commitment to raise domestic gas prices has been another IMF demand but, like the court legislation, has been delayed, raising international doubts over Kiev’s commitment to reforms.

Ms Markarova, who is expected to serve as acting finance minister until the end of the year, told the Financial Times that she hoped the IMF would “hopefully this week” give its approval of the anti-corruption court legislation.

https://www.ft.com/content/7160687c-6ca7-11e8-92d3-6c13e5c92914 1/3 10/06/2018 IMF-backed reforms in hand says new Ukraine ﬁnance minister “Negotiations on gas tariffs and energy market reforms are now under way and we hope to conclude [We] expect to get the IMF them soon and expect to get the IMF tranche in the tranche in the autumn autumn,” she added.

Oksana Markarova, Ukraine’s new acting ﬁnance minister “The faster we get it, the better . . it proves that we are progressing on our reform agenda [and is] a very good signal for investors,” she said. “From any angle, it is very important for us to be in the programme . . . We do not plan for a situation in which we do not get the IMF funds.”

Addressing last week’s ouster of Mr Danyliuk, with whom she worked as first deputy finance minister, Ms Markarova said it was “unfortunate,” adding: “Our priorities remain the same.”

Mr Danyliuk had accused Mr Groysman and other senior officials of “political corruption” as well as attempts to stack the finance ministry with staff loyal to President Petro Poroshenko.

Recommended A government adviser described Ms Markarova as a “disciple” of US-born Natalie Jaresko, who as finance minister from 2014 to 2016 was admired by Kiev’s western backers. Having in prior years worked with Ms Jaresko at a US-backed investment fund in Kiev, the US-educated Ms Markarova joined her as a deputy minister in 2015 to help usher the country through the IMF programme and restructure foreign debt after Russia occupied Crimea.

Timothy Ash, from BlueBay Asset Management, said in a tweet that Ms Markarova was “well respected” and would give reassurance “after Danyliuk’s tortuous exit”.

Ms Markarova said Ukraine had rebounded from a 17 per cent collapse in gross domestic product collapse to register growth of 2-3 per cent, while the government’s deficit had been cut from 10 per cent of GDP to 2.5 per cent.

Confronting concerns that this year’s budget deficit would miss targets, she pledged to “keep the parameters”.

The government hoped to tap debt markets this year, preferably after re-engaging with the IMF, she said. Ukraine faces a peak of some $8bn in foreign debt payments through 2019, a year when both presidential and parliamentary elections are to be held.

Debt service this year was “under control,” Ms Markarova said. She downplayed political concerns, insisting she felt “support from all the cabinet” and no pressure to make unmerited appointments.

https://www.ft.com/content/7160687c-6ca7-11e8-92d3-6c13e5c92914 2/3 10/06/2018 IMF-backed reforms in hand says new Ukraine ﬁnance minister “Public service in Ukraine of course is not the easiest . . . What helps me? I think about the soldiers on the front line. They cannot say [they] do not like the generals, quit and go home,” she said.

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