KYIV - The International Monetary Fund will not give more aid to Ukraine until it
becomes clear that, in the event of a government collapse, the next government
would follow through on promised reforms, the country's Finance Minister
Natalia Yaresko said on Monday.
Ukraine has been waiting since October for the IMF to dispense more aid as
part of a $40 billion package. The aid is contingent on the war-torn country
making its economy more competitive and reducing corruption.
The patchy performance of Prime Minister Arseny Yatseniuk's government in
implementing reforms, coupled with domestic political squabbles, have delayed
the disbursement of a third tranche worth $1.7 billion.
The government is reeling from the shock exit of its economy minister last
week, and Yaresko's comments underline the extent to which the political crisis
engulfing Ukraine threatens to derail its relationship with foreign creditors.
Low approval ratings for Yatseniuk's government have raised expectations of
a major ministerial reshuffle, and the government also could face a
no-confidence vote in parliament around the middle of February.
Asked in a television interview whether the IMF would stop lending to
Ukraine because of the crisis and a possible government collapse, Yaresko said:
"I think their [the IMF] approach is not political, but they will wait
until it becomes clear who the executive authorities are and whether these
authorities will take the responsibility to fulfill the conditions under which
they have already provided us with $6.7 billion."
"They can provide [financial assistance] to another government but
another government must take the responsibility and commitment that we took on
a year ago," she said, speaking on a talk show on the Ukrainian TV channel
ICTV.
An IMF spokesman in Washington could not immediately be reached for
comment.
Economy Minister Aivaras Abromavicius quit the government last week saying
he would not become a "puppet" for corrupt vested interests, and
accused a close ally of President Petro Poroshenko of trying to hijack control
of his ministry.
His departure shone an uncomfortable spotlight on Ukraine's efforts to
reform itself, which its Western-backed government pledged to do when it came
to power after the Maidan protests in the winter of 2013/2014. Ukraine's
backers had championed Abromavicius as a leading reformer.
In Washington, IMF managing director Christine Lagarde last week said
Abromavicius' resignation was "of concern" but mentioned no changes
to Ukraine's funding program.
Ukraine relies on money from the IMF, the United States and the European
Union to stay afloat. Its economy shrank by more than 10 percent last year,
dragged down by its war against pro-Russian separatists, who have taken control
of a swath of the country's eastern industrial heartland.
No comments:
Post a Comment