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Ukraine sees IMF tranche, market return in autumn

Thursday, July 06, 2017 - 03:02

Ukraine expects long-awaited state pension reforms to be passed after its parliament's summer break, its finance minister told Rreuters, meaning its next tranche of IMF aid and a return to borrowing markets will not happen before August. (Rough Cut only - No Reporter Narration)

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ROUGH CUT ONLY - NO REPORTER NARRATION Ukraine expects long-awaited state pension reforms to be passed after its parliament's summer break, its finance minister told Rreuters, meaning its next tranche of IMF aid and a return to borrowing markets will not happen before August. (Rough Cut only - No Reporter Narration) SOUNDBITE (English) UKRAINE FINANCE MINISTER, OLEKSANDR DANYLYUK, SAYING: "Number one is pension reform. And our vision is to adopt it in the parliament by the beginning of summer recess, which is 15th of July. Not much time left. So if not, it won't be able to become fully adopted, then we will do it first thing when the parliament come back in September." "It's (the reform programme) a quite complex reform. And it requires quite good communication. Now we're quite actively communicating to the population. It's not only about the parliament, it's also about the people actually accepting it. So it's very important at this stage, when we actually need to do quite serious reforms that are not sometimes easy to explain, we need to invest more time in communication, And that's what's happening both in the public domain, so we would communicate it, and there's some information campaign, but also within the parliament. Yes, the parliament is pretty much ready to vote for this. But, you know, everybody needs to be comfortable and we invest a lot of time into it." "We're looking for the right time to tap the market (for a bond sale). We want to do it this year, in the second half as we originally planned. The exact timing I cannot say because it depends on the conditions, and now we're more focused on actually adopting the legislation through the parliament because this is actually more important. This is much more important." "The reality, we don't need cash at this moment. It's rather symbolic, tapping the markets, and building this story for the next issues. So the amount here is more like what would the market accept. It's not like that we would like to solve our problems for the next 15 years with one issue. That's not the case. We don't need, a need for a significant amount of money. But it needs to be sizable introduction, so that it will be interesting to the market." "It was indeed a huge (cyber) attack, the biggest attack ever. And that happened in Ukraine, at least. And we don't know the cost of this attack. What is important is that we actually managed to overcome quite quickly the problems that it caused. There are still some outstanding issues. I cannot give you the estimate of the impact." STORY: Ukraine expects long-awaited state pension reforms to be passed after its parliament's summer break, its finance minister said on Wednesday (July 5), meaning its next tranche of IMF aid and a return to borrowing markets will not happen before August. Oleksandr Danylyuk told Reuters that the complexity of the pension reform plan, which is key to unlocking its next round of IMF financing, was the main reason why it would not be completed in the next couple of weeks, as it had hoped. It will also affect the timing of its first return to debt markets since its 2015 bailout. Back in May, Danylyuk said it was eyeing a $1 billion bond sale but it appears like the ambitions have been scaled back somewhat. On the recent cost of cyber attacks that have hit the Ukraine's tax department, power firms and ministries, including the finance ministry, he played down estimates that it could be as much as 0.5 percent of Ukraine's annual GDP, saying he could not give an estimate of the cost of the impact.

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Ukraine sees IMF tranche, market return in autumn

Thursday, July 06, 2017 - 03:02