![Aid is under threat. Who may cause Ukraine to lose IMF funding](https://img.unn.ua/img/2024/08/08/1723108700-1239-large.webp)
Aid is under threat. Who may cause Ukraine to lose IMF funding
Kyiv • UNN
The IMF requires an open competition for the position of the DGF director, but the authorities can appoint the head in a closed mode. Experts warn that ignoring the IMF's requirements could lead to the loss of critical financial assistance.
Since the beginning of Russia's large-scale war against Ukraine, international financial assistance has become a key pillar of support for the Ukrainian economy and defense capabilities. It is hard to imagine how we would be able to effectively defend ourselves without the help of external partners - creditors and donors. Along with foreign governments, organizations such as the International Monetary Fund (IMF) and the World Bank (WB) are among those helping Ukraine. It is important for international partners that their funds contribute to economic stability in our country, and therefore there are a number of important requirements that allow Kyiv to receive regular financial assistance, UNN writes.
Funding from the IMF plays a key role for Ukraine's economic stability and development. The IMF provides the necessary financial resources to maintain macroeconomic stability, strengthen foreign exchange reserves, and implement important structural reforms. This financing also helps to increase the confidence of international investors in the Ukrainian economy, which in turn stimulates investment and contributes to economic growth. In other words, it sends a signal that Ukraine can be trusted with its funds. In addition, cooperation with the IMF promotes the implementation of international best practices in economic management in Ukraine, which contributes to the efficiency of public administration and strengthening of the financial system. When receiving international assistance, the Government of Ukraine emphasizes the importance of support from international partners.
In particular, according to the Ministry of Finance, this year alone, budget support from the IMF is the second largest external financing for Ukraine. In 2024, it amounted to $3.1 billion. In total, the state budget has already received $7.6 billion in cooperation with the Fund.
The next IMF mission in preparation for the fifth review of the Extended Fund Facility program will begin in September. The expert discussions will focus on Ukraine's compliance with the terms of the Memorandum of Economic and Financial Policies. It is planned that as a result of a successful review of the program, Ukraine will receive the next tranche of the IMF in the amount of about $1.1 billion.
Each time the government receives another tranche from the IMF, it reports on the fulfillment of a number of requirements set out in a memorandum with the Fund. They mainly relate to the implementation of reforms that bring Kyiv closer to overcoming corruption.
One of these "beacons" that the IMF emphasizes is the introduction of an open competition procedure for the position of managing director of the Deposit Guarantee Fund. This structure is responsible for the liquidation of banks and guarantees that depositors will be able to receive their funds kept in the accounts of a failed financial institution. According to experts, public confidence in the banking system in Ukraine depends entirely on the DGF's actions.
![Image](/img/2024/08/08/1723108656-4672-large.webp)
As it turned out, Ukrainian legislation still does not contain a provision that the selection of a new head of the Fund should be based on an open and transparent competition. In its communications with the Ukrainian side, the IMF emphasized the need for appropriate legislative changes. The parties agreed and recorded in the Memorandum that the procedure will be developed and implemented in the spring of 2025.
Currently, the situation is such that the contract of the previous managing director of the DGF, Svitlana Rekrut, has expired and she was dismissed at her own request. Her deputy, Olga Bilay, is now acting in her place.
According to media reports, the Administrative Board of the DGF wants to appoint a new head of the Fund behind closed doors, which directly contradicts the agreements reached with the IMF. This is probably an attempt to circumvent the requirement of an open competition and appoint a person fully under their control.
According to journalists, in addition to Bila, Pavlo Polarush, head of the National Bank's Department for Work with Troubled Assets, is being considered for the position of managing director of the DGF.
Experts interviewed by UNN warn that failure to comply with the IMF's requirements could result in a disaster for the Ukrainian budget, as the country could be left without external financing.
"In the current conditions, in the conditions of total dependence on external financing, it is certainly dangerous to ignore the interests of the IMF, it can lead to the suspension of cooperation, it can lead to certain financial and economic problems for the Ukrainian economy... So, given our financial dependence, we must take into account the IMF's requirements, given the financing that we cannot do without now," Ruslan Bortnik, director of the Ukrainian Institute for Policy Analysis and Management, said .
Experts emphasize that international partners associate Ukraine's domestic policy with corruption, and they believe that we are a "deeply corrupt country." Therefore, in matters of personnel appointments, we should not go against the recommendations of international partners, especially the IMF, on whose assistance we will be dependent for at least several more years.
"If the IMF demands an open competition for this position, the Ukrainian authorities should not only listen to it, but do so. Because if Ukraine continues to take steps step by step contrary to the recommendations of our partners, from whom we are constantly receiving various kinds of assistance, from military to financial, then at some point the question will simply arise of providing this assistance or reducing it," emphasized the head of the Committee of Economists of Ukraine, Andriy Novak.
The fact that Polarush, as found out , has repeatedly traveled abroad since the start of the large-scale invasion does not add to the positive situation. In particular, according to media reports, in November 2022, he received permission to leave the country from the odious former Deputy Minister of Defense, who is currently a suspect in corruption crimes. The permit was allegedly issued to Polarush to travel abroad in an elite Lexus car to receive humanitarian aid. However, it is not yet known on what grounds Polarush traveled abroad from February to November 2022.
The Verkhovna Rada believes that law enforcement should investigate the circumstances of Polarush's departure abroad. In particular, Mykola Velychkovych , a member of the Verkhovna Rada Committee on Transport and Infrastructure, believesthat investigators should establish how the official left Ukraine. A member of the Verkhovna Rada Committee on National Security and Defense, Hennadiy Kasai , does not rule out that Polarush may have problems during the special vetting process as a candidate for the position of managing director of the Deposit Guarantee Fund.
So whether the whole country should be jeopardized for the sake of one appointment is a rhetorical question..
Popular
![Aid is under threat. Who may cause Ukraine to lose IMF funding Aid is under threat. Who may cause Ukraine to lose IMF funding](https://img.unn.ua/img/2024/08/08/1723108700-1239-thumb.webp)
Aid is under threat. Who may cause Ukraine to lose IMF funding
![Bulgaria strengthens its support for Ukraine: military receives permission to participate in NATO exercises Bulgaria strengthens its support for Ukraine: military receives permission to participate in NATO exercises](https://img.unn.ua/img/2024/08/08/1723092073-3721-thumb.webp)
Bulgaria strengthens its support for Ukraine: military receives permission to participate in NATO exercises
![Mountaineer's Day, Day of the Armed Forces Communications Troops, World Cat Day. What else can be celebrated on August 8 Mountaineer's Day, Day of the Armed Forces Communications Troops, World Cat Day. What else can be celebrated on August 8](https://img.unn.ua/img/2024/08/07/1723054673-3162-thumb.webp)
Mountaineer's Day, Day of the Armed Forces Communications Troops, World Cat Day. What else can be celebrated on August 8
![CNN: "Hezbollah can attack Israel without Iranian permission CNN: "Hezbollah can attack Israel without Iranian permission](https://img.unn.ua/img/2024/08/08/1723084868-4555-thumb.webp)
CNN: "Hezbollah can attack Israel without Iranian permission
![The United States was not warned about the operation in the Kursk region The United States was not warned about the operation in the Kursk region](https://img.unn.ua/img/2024/08/08/1723084703-1102-thumb.webp)
The United States was not warned about the operation in the Kursk region
Publications
![Aid is under threat. Who may cause Ukraine to lose IMF funding Aid is under threat. Who may cause Ukraine to lose IMF funding](https://img.unn.ua/img/2024/08/08/1723108700-1239-thumb.webp)
Aid is under threat. Who may cause Ukraine to lose IMF funding
![Ex-Minister Solskyi's case: lawyers get permission to seize NABU materials Ex-Minister Solskyi's case: lawyers get permission to seize NABU materials](https://img.unn.ua/img/2024/08/07/1723045226-4704-thumb.webp)
Ex-Minister Solskyi's case: lawyers get permission to seize NABU materials
![Shelters and warning systems: how full-scale war has changed approaches to school construction and the organization of the educational process Shelters and warning systems: how full-scale war has changed approaches to school construction and the organization of the educational process](https://img.unn.ua/img/2024/08/07/1723012062-1786-thumb.webp)
Shelters and warning systems: how full-scale war has changed approaches to school construction and the organization of the educational process
![Only about a third of Ukrainians believe that NABU is fighting corruption - poll Only about a third of Ukrainians believe that NABU is fighting corruption - poll](https://img.unn.ua/img/2024/08/06/1722957722-1926-thumb.webp)
Only about a third of Ukrainians believe that NABU is fighting corruption - poll
![Business and loans: how a profitable solution can turn into a burden for entrepreneurs Business and loans: how a profitable solution can turn into a burden for entrepreneurs](https://img.unn.ua/img/2024/08/06/1722942815-3111-thumb.webp)
Business and loans: how a profitable solution can turn into a burden for entrepreneurs
![Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine](https://img.unn.ua/img/2024/08/08/1723118450-1931-thumb.webp)
Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine
![ATESH reconnoitered an observation post on the coast of Sevastopol in the occupied Crimea ATESH reconnoitered an observation post on the coast of Sevastopol in the occupied Crimea](https://img.unn.ua/img/2024/08/08/1723118297-2514-thumb.webp)
ATESH reconnoitered an observation post on the coast of Sevastopol in the occupied Crimea
![Russian airstrike in Sumy region: prosecutor's office clarifies that two brothers aged 6 and 23 were killed Russian airstrike in Sumy region: prosecutor's office clarifies that two brothers aged 6 and 23 were killed](https://img.unn.ua/img/2024/08/08/1723117572-1672-thumb.webp)
Russian airstrike in Sumy region: prosecutor's office clarifies that two brothers aged 6 and 23 were killed
![The expert told what political and military goals the breakthrough in the Kursk region pursues The expert told what political and military goals the breakthrough in the Kursk region pursues](https://img.unn.ua/img/2024/08/08/1723117415-2286-thumb.webp)
The expert told what political and military goals the breakthrough in the Kursk region pursuesExclusive
!["If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia "If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia](https://img.unn.ua/img/2024/08/08/1723116575-4869-thumb.webp)
"If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia
![Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine](https://img.unn.ua/img/2024/08/08/1723118450-1931-thumb.webp)
Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine
![The expert told what political and military goals the breakthrough in the Kursk region pursues The expert told what political and military goals the breakthrough in the Kursk region pursues](https://img.unn.ua/img/2024/08/08/1723117415-2286-thumb.webp)
The expert told what political and military goals the breakthrough in the Kursk region pursuesExclusive
!["Opposition Platform for Life" MP from Cherkasy region detained while trying to illegally cross the border with Slovakia - SBU "Opposition Platform for Life" MP from Cherkasy region detained while trying to illegally cross the border with Slovakia - SBU](https://img.unn.ua/img/2024/08/08/1723116525-2004-thumb.webp)
"Opposition Platform for Life" MP from Cherkasy region detained while trying to illegally cross the border with Slovakia - SBU
!["If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia "If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia](https://img.unn.ua/img/2024/08/08/1723116575-4869-thumb.webp)
"If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia
![Zelenskyy: "Army+" application will be available from today Zelenskyy: "Army+" application will be available from today](https://img.unn.ua/img/2024/08/08/1723115656-3774-thumb.webp)
Zelenskyy: "Army+" application will be available from today
![Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine](https://img.unn.ua/img/2024/08/08/1723118450-1931-thumb.webp)
Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine
![ATESH reconnoitered an observation post on the coast of Sevastopol in the occupied Crimea ATESH reconnoitered an observation post on the coast of Sevastopol in the occupied Crimea](https://img.unn.ua/img/2024/08/08/1723118297-2514-thumb.webp)
ATESH reconnoitered an observation post on the coast of Sevastopol in the occupied Crimea
![Russian airstrike in Sumy region: prosecutor's office clarifies that two brothers aged 6 and 23 were killed Russian airstrike in Sumy region: prosecutor's office clarifies that two brothers aged 6 and 23 were killed](https://img.unn.ua/img/2024/08/08/1723117572-1672-thumb.webp)
Russian airstrike in Sumy region: prosecutor's office clarifies that two brothers aged 6 and 23 were killed
![The expert told what political and military goals the breakthrough in the Kursk region pursues The expert told what political and military goals the breakthrough in the Kursk region pursues](https://img.unn.ua/img/2024/08/08/1723117415-2286-thumb.webp)
The expert told what political and military goals the breakthrough in the Kursk region pursuesExclusive
!["If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia "If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia](https://img.unn.ua/img/2024/08/08/1723116575-4869-thumb.webp)
"If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia
![Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine](https://img.unn.ua/img/2024/08/08/1723118450-1931-thumb.webp)
Kuleba discusses with Norwegian Foreign Minister expansion of F-16 initiative to Ukraine
![The expert told what political and military goals the breakthrough in the Kursk region pursues The expert told what political and military goals the breakthrough in the Kursk region pursues](https://img.unn.ua/img/2024/08/08/1723117415-2286-thumb.webp)
The expert told what political and military goals the breakthrough in the Kursk region pursuesExclusive
!["Opposition Platform for Life" MP from Cherkasy region detained while trying to illegally cross the border with Slovakia - SBU "Opposition Platform for Life" MP from Cherkasy region detained while trying to illegally cross the border with Slovakia - SBU](https://img.unn.ua/img/2024/08/08/1723116525-2004-thumb.webp)
"Opposition Platform for Life" MP from Cherkasy region detained while trying to illegally cross the border with Slovakia - SBU
!["If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia "If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia](https://img.unn.ua/img/2024/08/08/1723116575-4869-thumb.webp)
"If they realize that the war is not going according to their scenario." Podoliak makes statement amid events in Kursk region of Russia
![Zelenskyy: "Army+" application will be available from today Zelenskyy: "Army+" application will be available from today](https://img.unn.ua/img/2024/08/08/1723115656-3774-thumb.webp)
Zelenskyy: "Army+" application will be available from today
![Fedorov: More than 95% of drones for the Armed Forces are produced in Ukraine Fedorov: More than 95% of drones for the Armed Forces are produced in Ukraine](https://img.unn.ua/img/2024/08/08/1723110212-1087-thumb.webp)
Fedorov: More than 95% of drones for the Armed Forces are produced in Ukraine
![Aid is under threat. Who may cause Ukraine to lose IMF funding Aid is under threat. Who may cause Ukraine to lose IMF funding](https://img.unn.ua/img/2024/08/08/1723108700-1239-thumb.webp)
Aid is under threat. Who may cause Ukraine to lose IMF funding
![Power outages are unavoidable, so residents of apartment buildings should join compensation programs for the purchase of generators - expert Power outages are unavoidable, so residents of apartment buildings should join compensation programs for the purchase of generators - expert](https://img.unn.ua/img/2024/08/08/1723104746-1267-thumb.webp)
Power outages are unavoidable, so residents of apartment buildings should join compensation programs for the purchase of generators - expertExclusive
![They don't want to think. Law enforcers do not like to investigate economic crimes - ex-judge They don't want to think. Law enforcers do not like to investigate economic crimes - ex-judge](https://img.unn.ua/img/2024/08/08/1723103947-2887-thumb.webp)
They don't want to think. Law enforcers do not like to investigate economic crimes - ex-judgeExclusive
![No blackouts are expected, almost 500 settlements are without electricity - Ukrenergo No blackouts are expected, almost 500 settlements are without electricity - Ukrenergo](https://img.unn.ua/img/2024/08/08/1723103489-3225-thumb.webp)