UKRAINIAN CABINET SETS MAIN 2000 BUDGET TARGETS... Despite the continued economic decline, the government has approved rather optimistic guidelines for the 2000 budget. It predicts 2 percent growth in GDP to 150.8 billion hryvni ($34.3 billion). Budget revenues are foreseen as exceeding expenditures by 500 million hryvni. According to UNIAN, this latter guideline was adopted to prevent the budget deficit from impacting on the "overall economic situation" and to provide funds to repay the country's foreign debt. Annual inflation is predicted at 12 percent, down from this year's envisaged rate of 19.1 percent. The hryvnya exchange rate is expected to fall from the current 4.4 to $1 to 5 hryvni to $1. The government indents to submit the budget draft to the parliament by 15 September. JM

...VOWS TO FULFILL IMF CONDITIONS FOR NEXT TRANCHE. The government has sent a letter to the IMF confirming that it has met all requirements necessary to receive the next IMF loan tranche. A final decision on the last major requirement- -an increase in tariffs on public utilities--is to be taken before the IMF Board of Directors meeting on 7 September. Deputy Premier Serhiy Tyhypko, who is heading a Ukrainian delegation to talks with the IMF in Washington, said that "the only thing Ukraine needs to show are good incomes from natural gas auctions because we are searching for a way to pay off our social payments which is the only stressful issue for us," according to the 3 September "Eastern Economic Daily." JM