The IMF report on the Ukrainian economy gives the reason for the resignation of the board of the National Bank

Yosta Lungman, the IMF Permanent Representative in Ukraine, gives two explanations for the deterioration in the economic forecast of the International Monetary Fund for Ukraine in June: in April a 7.7% drop in GDP was predicted, and now it is 8.2%.

The explanations Yosta Lungman provides are:

• Insufficient savings of Ukrainian households, people do not have enough personal savings to overcome the coronavirus pandemic. Because of this, the consumption of goods and services by the general public is falling sharply and will continue to fall. People simply do not have money to spend. Therefore, the sales of manufacturers and their incomes are reduced.

•The lack of fiscal break for the economy. The government does not support enterprises, and those are on the brink of extinction.

“Incredible insight from the IMF. After all, as we remember that when the population of Ukraine lost billions due to the exchange rate swings and the triple devaluation of the hryvnia that Gontareva and Poroshenko arranged for us, as well as the bank closures in 2014-2016, which destroyed a hundred banks, the IMF said that all this was good. And now they have a revelation. They say that people have no money left because we have a crisis,” MP Aleksandr Dubinskyi comments on the report of the International Monetary Fund.

Prior to this, he has repeatedly stated that the demonetization of the Ukrainian economy, the extraction of money from it cause serious damage to the country.

“This IMF’s economic report is the best proof that the board of the National Bank should resign. The financial system should be rebuilt in the interests of the national economy. The economy needs to be fueled by the cash influx. Money should not be sent into the NBU’s certificates of deposit, government loan bonds, currency speculation, pockets of officials of the National Bank - Gontareva, Smoliya, Rozhkova, Churia and, of course, Poroshenko. Even the IMF confirms it,” Dubinskyi emphasizes.

Economists and political experts have repeatedly blamed the Ukrainian government, particularly, both Prime Ministers - Alexei Goncharuk and Denis Shmygal for the inaction. However, the Cabinet of Ministers has not yet reached the appropriate conclusions. Moreover, Shmygal still has not changed the economic policy program after the Verkhovna Rada rejected the two previous plans.

“The government of Shmygal is doomed when, instead of engaging in a government program, the program for overcoming the crisis, he flies to Transcarpathia to "save the country" from flooding. Despite no use of him being present there as he is not the head of any ministry or department. It is clear that Ukraine does not need such a prime minister, especially now. Indeed, while he will be engaged in anything but his immediate duties, the country will be demolished by the economic crisis,” Dubinskyi says.

Andrey Pshenichnyi for the site