The IMF may stop cooperating with Ukraine because of the political crisis and corruption

Key creditor of Ukraine international monetary Fund expressed concern over the situation in Ukraine, weakening of the public administration reform and the lack of effective fight against corruption. This is stated in the statement of the managing Director of the Fund Christine Lagarde.

«I am concerned at the weakening of the reform of public administration, fight corruption and reduce the influence of law and the rule of law in the formation of policy. Without the desire to reinvigorate reforms to strengthen the fight against corruption will be difficult to understand how the Fund will be able to continue the program (cooperation with Ukraine – ed.) and help make it a success» — quoted Lagarde the external relations Department of the Fund.

According to Lagarde, Ukraine risks repeating the past experience of the collapse of the reforms. «Ukraine risks return to the time of the failure of the reforms that the country has experienced in recent history. In this regard, it is important that the leadership of the country returned to Ukraine on a promising path of reform», — said the head of the IMF.

In turn, the U.S. Ambassador to Ukraine Geoffrey Pyatt described the recent IMF statement about the threat to the extended Fund facility EFF of Ukraine as another argument to the need for reforms.

«This is another argument for complete rebooting of the government reformers and zero tolerance to corruption»,- he wrote in his Twitter on Wednesday, commenting on the corresponding statement of the IMF.

Earlier, Finance Minister Natalia Jaresko noted that the international monetary Fund in the event of a change of government in Ukraine will take a break in the program of the eff and EFF will continue only through the willingness of new governments to honour the commitments made by their predecessors.

Open in March of 2015 four-year EFF program with the total volume of SDR12,348 billion (approximately 17,11 billion US dollars at current exchange rates) with the first tranche of 5 billion dollars initially expected quarterly revision of the programme and the allocation in 2015 of three more tranches of SDR1,18 billion (about 1.63 billion dollars) and a decrease in quarterly tranches in 2016-2018 to SDR0,44 billion (0,61 billion).

At the same time, Ukraine managed to get only the first two tranches, the first amounting to 2.7 billion dollars went to the government to support the state budget, while the recipient of the remaining funds traditionally have been the national Bank.

11 January Finance Minister Yaresko explained that the international monetary Fund (IMF) commended the law on state budget for 2016 and adopted the package of legislation, however, for the positive decision of the Fund about the allocation of Ukraine of the III tranche of the program eff EFF official Kiev is necessary to perform the obligations in the field of anti-corruption and other structural reforms.

21 January 2016 the President of Ukraine Petro Poroshenko met with Lagarde in Davos. «We hope to receive funds the next tranche (the third tranche — ed.) in February,» he said following the discussion.

The IMF may stop cooperating with Ukraine because of the political crisis and corruption 10.02.2016

Февраль 10th, 2016 by
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