Zelenskiy commits to the IMF priority amid COVID-19 economy stop

UKRAINE - In Brief 16 Mar 2020 by Dmytro Boyarchuk

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We are sinking into COVID-19 hysteria fast. Only five confirmed cases in Ukraine (one death) but tension is snowballing. Last week the authorities closed schools and universities for quarantine. From March 17th Ukrainian borders will be locked. And today many cities, including Kyiv-city, announced the closure of shopping malls, restaurants and all public places except for groceries, pharmacies, and gas stations. Many companies are moving to a remote work regime. Companies that used to work with citizens, such as utilities’ service providers, closed their receptions. And just now President Zelenskiy addressed Ukrainians, calling for large cities to close their metros and requesting to limit inter-city transportation. The number of passengers in public transport should be limited to 20 persons per bus. It sounds like a full stop for a substantial part of economy. Good news – Zelenskiy in his speech stated openly that Ukraine will be seeking the support of the IMF. The Fund has announced a new program that should help with the coronavirus impact and, apparently, Ukrainian authorities hope to receive extra funding from this credit line. From different sides we hear many requests for state support, tax holidays, more social protection for those potentially affected, more funding for healthcare. Budget collections are falling, and the situation will only be aggravated. The authorities have little choice but to seek extra loans from IFIs. We are in the progress of calibrating the potential impact of COVID-19 on Ukraine. But every new day brings more shocking news, pushing us to a new level of understanding the reality. In a few days, I hope, we will be able to share our first...