According to Alier, the terms of disbursement of the fourth tranche of the Standby loan are progress on the issue of improvement of the health of the Ukrainian banking industry, staying within the limit of the state budget deficit for 2009, and drafting a realistic state budget for 2010 with a deficit not exceeding 3% of GDP (4% of GDP, including the deficit of the Naftohaz Ukrainy national joint-stock company.
Alier warned the Ukrainian authorities against excessive financing of the state budget' deficit through issuance of domestic loan bonds by the National Bank of Ukraine.
"Any monetarization of the budget deficit should be conducted very carefully because the consequences could be unpredictable and negative, for example, a jump in the currency exchange rate and uncontrollable inflation," Alier said.
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