IMF will have to review Ukraine aid program if Ukraine loses East

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The International Monetary Fund warned in a report released today that it will be forced to revisit the newly approved aid program to Ukraine, which is worth $17 billion, if Kyiv loses control over the Eastern regions of the country.

Reported by Radio Svoboda.

The document states that additional external financing for Ukraine would be needed in the case of the loss of this economically strategic region, as this would significantly reduce the country’s revenues.

The IMF also noted that deterioration of relations between Ukraine and Russia could trigger an amendment of the financial program. As a quarter of Ukrainian produce is exported to Russia, this could damage the Ukrainian economy.

Moreover, amongst the risks in Ukraine, there is also uncertainty concerning the commitment of the Ukrainian authorities towards carrying out a wide program of reforms (many of which are politically unpopular), especially after the presidential elections on May 25.

Yesterday, the IMF executive board approved a $17 billion loan to Ukraine over a two year period, provided that it carries out certain reforms, of which 3.2 billion should shortly be received by Ukraine.

 

Source: zik.ua

Translated by Dasha Darchuk

 

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