IMF uses outdated approaches in extending loans - Azarov
KYIV. Dec 1 (Interfax) - The International Monetary Fund (IMF) is guided by outdated economic and monetary approaches when issuing loans, Prime Minister of Ukraine Mykola Azarov believes.
"The IMF is guided by very outdated economic approaches when issuing credits... Such monetary approaches are obsolete. Such conditions have not worked anywhere. They have not worked in Italy, Spain, Portugal, Greece and Cyprus. Greece has been falling for the sixth year," Azarov said in interview with TSN TV Channel.
"For instance, a country has no money - it should cut expenses, if it cannot repay debts - it should reduce the number of public employees, teachers, doctors, decrease wages, pensions. Look what is happening in Greece: if you cannot pay - 25% of public employees are laid off, if you cannot reduce debts - you should cut pensions, wages. I don't want to talk about Greece. I want to talk about Ukraine," the premier said.
He said Ukraine has a different model of development. "We manage to provide some growth during the crisis. The IMF is a club that pays in money. The largest contribution is that of the United States, but it consists of Britain, Germany, France and other EU countries. And if the European Union wants, as we requested, not to include credit terms unacceptable for us, a positive decision would be made," Azarov said.
He recalled that ahead of the Vilnius summit of the Eastern Partnership the IMF sent a letter to the Ukrainian government that contained all loan terms unacceptable for Ukraine.
"Therefore when we received the letter, it became clear that we would not get the IMF loan. If we would not get the IMF loan, then trade and economic turnover with Russia would fall and so would budget revenues, and our people would remain without work. Thus we had to take a break. And solve our problems," Azarov said.
