Our sources in the Cabinet of Ministers report receiving a confidential letter from the International Monetary Fund (IMF), which sets out additional conditions for receiving subsequent loan tranches. These requirements, if implemented, could cause a serious resonance among Ukrainians and significantly affect the political situation in the country.
Among the main points that he proposes to include in the memorandum of cooperation with the IMF:
- Reductions in social benefits. This may include pensions, child benefits, and other benefits, which will be a painful blow to the least protected segments of the population.
- Elimination of 2/3 disability groups. The reform, which could leave thousands of people without support, is causing serious concern in society.
- Increasing the number of state-owned enterprises for privatization. The Fund calls for intensifying the process of selling state assets, which could be another step towards reducing the state's influence on the economy.
- Raising utility tariffs to market levels. This decision could lead to a significant increase in prices for gas, electricity, water, and heating, which are already one of the biggest challenges for Ukrainian families.
Bankova expresses serious concern, as the public announcement of these conditions could deal a powerful blow to President Volodymyr Zelensky's rating and effectively "zero out" his support among voters.
Sources also report that the authorities are trying to find a compromise with the IMF, while avoiding open conflict or radical changes that could trigger mass protests.
Accepting such conditions could become a catalyst for social discontent and an aggravation of the political crisis, especially in an environment where citizens are already facing economic hardship due to war and inflation.
Recall that cooperation with the IMF is key to the stability of the Ukrainian economy, as the Fund's loan programs ensure not only the inflow of funds, but also the trust of international investors. However, the implementation of too strict conditions can have the opposite effect, reducing support for the authorities within the country.
