Features of Ukraine's cooperation with the International Monetary Fund

Ostrovska Natalia
D.Sc. in Economics, Professor, Department of Finance and Credit, Yuriy Fedkovych Chernivtsi National University, Chernivtsi, E-mail: n.ostrovska@chnu.edu.ua, ORCID ID: https://orcid.org/0000-0002-7259-7403

Kosach Irina
D.Sc. in Economics, Professor, Department of Public Administration and Organizations’ Management, Chernihiv Polytechnic National University, Chernihiv, E-mail: irish_kos@ukr.net, ORCID ID: https://orcid.org/0000-0003-1730-7140

Cite this article:

Ostrovska N., Kosach I. (2022) Features of Ukraine's cooperation with the International Monetary Fund. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Osoblyvosti spivpratsi Ukrainy z Mizhnarodnym Valiutnym Fondom; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11-12 (300-301), pp. 64-74.

Abstract

The article determines that the influence of supranational organizations on the regulation of international, and in particular, interstate relations, is gradually increasing in the current state of intensification of the processes of integration and globalization of the life of the international community. The activation of Ukraine's foreign policy activity presupposes its participation in such interstate associations. The necessity of the Ukrainian economy in international lending within the framework of cooperation programs with the International Monetary Fund is analyzed. The stages of Ukraine's cooperation with the IMF were studied. Proposals for their further development in the conditions of globalization and possible consequences of this are provided. The main advantages and disadvantages of Ukraine's cooperation with the IMF are outlined. It was determined that the positive aspects of cooperation with the IMF in ensuring the economic sovereignty of Ukraine include: reducing risks in the banking sector, reducing inflation, internal and external stability, stabilization and support of the exchange rate, maintaining a certain stability at the level of the national currency and covering the budget deficit. It is highlighted that at the same time, cooperation with the IMF means the possibility of negative moments, in particular, IMF funds cannot be spent on structural reforms, and the increase in public debt, in turn, can lead to the inability of the government to serve and the threat of default.

Keywords

International Monetary Fund, international lending, external debt, solvent demand, tranche.

JEL classification:E440, F210, F310; DOI: 10.32680/2409-9260-2022-11-12-300-301-64-74

UD classification: 336.71(477)

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