The statement by the IMF signals the need to accelerate reforms / Photo from UNIAN
Ukraine’s Finance Minister Natalie Jaresko noted Wednesday that the financial assistance is not provided without reforms, so Ukraine should accelerate their implementation.
The statement by Ukraine’s key creditor – The International Monetary Fund – on the possibility of suspending cooperation with Ukraine caused by dragging reforms and the lack of results in the battle against corruption is a direct evidence of the need to accelerate reforms, said Natalie Jaresko during the meeting of the Verkhovna Rada Committee on Economic Policy.
"Today's statement by the IMF stresses the need to accelerate reform. At present, the IMF has no questions concerning the budget, there are almost no issues regarding the text of a draft memorandum [on the second revision of the reforms program], but there is an issue of how we will deal with the political crisis, whether we accelerate reform,” Jaresko said. “It is evident of the fact that there can be no disbursements without reform. It is necessary to accelerate reforms."
Read alsoUkraine risks losing IMF support over stalled reforms – LagardeAs UNIAN reported earlier, former IMF Managing Director Christine Lagarde said that the IMF is concerned about the situation in Ukraine, the weakening of the public administration reform and the lack of an effective fight against corruption. In this regard, the fund may suspend the program of cooperation with Ukraine, as it will be very difficult to implement.
According to Lagarde, Ukraine runs the risk of repeating the history of previous reforms being folded.
Read alsoSome technical aspects being fine-tuned: Cabinet on memorandum with IMF"Without a substantial new effort to invigorate governance reforms and fight corruption, it is hard to see how the IMF-supported program can continue and be successful," she said.
As reported earlier, the IMF on March 11 approved a four-year EFF worth $17.5 billion for Ukraine. The first tranche worth $5 billion under this program arrived in Ukraine on March 13. The second tranche worth $1.7 billion was transferred to Ukraine on August 4.
The second program review was conducted in two stages. The IMF mission was operating in Kyiv in September, and on October 2 the talks were suspended due to the local elections in the country, as well as ongoing discussions of the tax reform and the draft state budget for 2016. In November, negotiations between Ukraine and the IMF resumed.
Read alsoYatsenyuk names required principles for Cabinet team to continue its workAt present, Ukraine and the IMF are agreeing a report on the progress of reforms implementation and the Memorandum on the second program review, while identifying further actions. It is noted that the two sides are discussing a wide range of issues within the framework of the second program review, which includes various aspects of monetary, banking and anti-corruption policies, the pension reform and the privatization process.
Read alsoVOA: IMF will delay aid to Ukraine until political fog clears – Jaresko