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According to the Deputy Chief of NBU, Dmitry Sologub, failure to secure IMF funds this year will increase inflation and devalue the hryvnia.

“Refusal to cooperate with the IMF will most likely lead to an increase in debt service costs, a reduction in the inflow of foreign investment, and pressure on the foreign exchange reserves of the National Bank,” he recently said (Economic Truth). “The government should reduce the budget deficit, thus the hryvnia exchange rate will weaken in order to neutralize the negative impact on the balance of payments, respectively, inflation will accelerate,” stressed Shologub.

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