Bank official explains that WB has not invited Ukraine's government for talks, because of yet unfulfilled conditions for funds' release
ning the issue of releasing to Ukraine the first $250 million tranche of a loan program at this time, derailing earlier plans that final talks regarding the funds would be held in Washington on Monday.
According to the World Bank’s chief of mission in Ukraine Gregory Jedrzejczak, the World Bank has not yet invited Ukraine’s Cabinet of Ministers to discuss the start of the financing of the tranche under the bank’s Programmatic Adjustment Loan program because the Ukrainian government has not fulfilled all the conditions for its release.
“There will not be any negotiations on April 16 because not all of the conditions have been fulfilled yet. The majority have been met, but for negotiations everything needs to be done,” Jedrzejczak said.
Jedrzejczak noted that Ukraine’s Cabinet has not yet fulfilled the conditions to reform the country’s financial system, including Bank Ukraina, and has not published the data from the Naftogaz Ukrainy audit.
Jedrzejczak did not hide the fact that the World Bank wants to wait for the results of the Cabinet’s report to parliament, which could bring about its dismissal.
“Of course we need to see what happens on April 17 and 19,” he said.
Were the planned Washington talks actually held on Monday, April 16, the World Bank’s board of directors would then have met in May to issue an expected positive decision on releasing the loan tranche.
“May is not realistic. When is realistic is tough to say,” Jedrzejczak said.
The World Bank began preparing the Programmatic Adjustment Loan for Ukraine last year. The loan, if it goes through, will be the bank’s largest loan to Ukraine to date.
The $750 million credit could be released in three equal tranches between 2001-2003.
Ukraine’s government is hoping that the bank will be one of its main creditors this year.
The World Bank released its last credit of $60 million for reform of the financial sector to Ukraine in February of this year.
The Cabinet is scheduled to report to parliament on its work over the last year on April 17.
The Communist Party faction has initiated the dismissal of the government and claims to have the votes necessary to push through a motion of no confidence in the government next week.
