Christine Lagarde impressed with Ukraine’s progress.
On September 6 Ms. Christine Lagarde, Managing Director of the IMF, visited Kyiv. During this visit she expressed her optimism about observed results. “I am extremely encouraged by the progress that has been achieved in the past few months” said Ms. Lagarde. “In a difficult environment, macroeconomic stabilization is taking hold and the economy shows signs of turning the corner”, mentioned the IMF official. In fact it is for the first time Ukraine deserves such a compliment from the IMF official. We are not inclined to overestimate this message. So far only some initial steps have been made and the whole reformation process could be easily reverted. For the moment the main risk is related to potential reaction of Ukrainians on boosted heating bills this fall (the Cabinet is really nervous about this point). Nevertheless, this message from Ms. Lagarde sounds really encouraging in the context of further cooperation with the IMF and other western partners. Put it different, should Ukraine weather the upcoming months without step backs on critical changes (like heating tariffs), the country will finally leave quite dangerous turbulence zone. And for sure in this case substantial foreign currency inflow from the IFI’s will be secured.