Russian loan more profitable for Ukraine than IMF loan

20 December 2013 18:34
(QHA) -

The loan issued to Ukraine by the Russian Federation is more profitable than the one proposed by the International Monetary Fund (IMF), Vice Prime Minister of Ukraine Yuriy Boiko has said, according to Interfax-Ukraine.

"The credit conditions [from Russia] are rather convenient. They foresee a rate of 5% per annum. It differs from the loan offered by the IMF: it has a rate of 4% per annum, but there is a very important thing there - the conditions proposed by the International Monetary Fund: to fulfill the conditions and get a loan we should have raised tariffs for the population and allow a deep devaluation of the hryvnia. The proposals from Russian partners did not include such stringent requirements for our economy, our society. Therefore we believe that this loan was more profitable for us," Boiko said at the round table "Let's Unite Ukraine" in Kyiv.

According to him, there is another credit program, which concerns relations between Ukraine and Russian partners – in part of the construction of transnational transit corridors. Boiko said that the program is beneficial for both Ukraine and Russia, as "these corridors start in Russia, and go through Ukraine to Europe."