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If IMF refuses, Ukraine to borrow from BRIC countries

Deputy Prime Minister/Minister for Social Policy Serhiy Tihipko predicts that in case the International Monetary Fund (IMF) refuses to continue lending to Ukraine, the Ukrainian authorities will seek to agree on raising loans from China, India, Brazil or Russia, he told the First National TV Channel Thursday, Ukrinform reports.

Tihipko stressed the need to attract loans due to the fact that in 2012 Ukraine on state obligations has to pay about USD 15 billion in repayment of existing loans and interest thereon.

Commenting on the negotiations with the IMF, Tihipko said that the Ukrainian side itself has initiated a break until late November - early December, until the completion of gas negotiations with Russia, because the main contentious issue in negotiations with the IMF is its requirement to raise gas prices for households and enterprises of municipal power system . At the same time, he acknowledged that negotiations with Russia on gas are delayed.

Earlier, Prime Minister Mykola Azarov had said the country could live another year without IMF loans.

As reported, Ukraine and the IMF in early November agreed on making a pause and on starting a revision of the cooperation program, following completion of gas talks with Russia.

The cooperation program of Ukraine and the IMF, adopted in July 2010, provides for allocation of a loan to Ukraine worth almost USD 16 billion. The term of the program operation is 2.5 years. Money is attracted under the rate of 3.5% annual.

This year, Ukraine received two disbursements of this loan to the amount of USD 1.89 billion and USD 1.5 billion.

However, to receive the current IMF tranche Ukraine has to fulfill a number of requirements, in particular, to raise tariffs for households for gas and heat supply.

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