Losing the credibility of the International Monetary Fund (IMF) and the European Union, the Poroshenko regime expects to get smaller loans. Some 17 billion grivnas, which foreign countries, banks and funds may loan to Ukraine to implement investment projects, are provided for in the 2018 national budget.
In particular, the Cabinet of Ministers hopes to receive the greater part of loans from the World Bank and the European Investment Bank in the amount of 6.8 billion and 6.4 billion grn respectively. Also, Kiev counts on the governments of Poland, Hungary, Japan and Germany for loans.
As far as external borrowing is concerned, it was worthwhile for Ukraine to offer securities on the Eurobond market. Last year this country raised more than $3 billion in its sovereign bond issue due in 2032 that would ease painful debt commitments hitting a peak of $7.5 billion in 2019.
According to analysts, returning to the international financial market has made the Poroshenko regime less inclined to meet the IMF's demands, which include pension reform and a crackdown on corruption. However, this year Kiev must pay the fund $2.4 billion worth of a debt issued by the state and state-owned subsidiaries in 2014 and 2015.
Deputy Finance Minister Yuri Butsa said Ukraine could borrow at least $2 billion in 2018. The total amount of borrowings may reach 215 billion grn this year that is 40.1 billion grn more than the planned sum of money loaned in 2017.
It is not possible to rely on non-recoverable financial assistance this year, though 2.4 billion grn worth of this assistance of the EU, foreign countries and international donors have been provided for in the 2018 national budget. Out of this amount, 600 million grn or so are expected to be allocated by the United Nations and the Organization for Security and Co-operation in Europe.
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