Lagarde: the IMF Program in Ukraine depends on the government

Executive Director of the International monetary Fund (IMF) Christine Lagarde said that Ukraine is an example of a country where the government is dependent on the success or failure of the IMF mission, reports “Voice of America”.

“Ukraine is a perfect example …. Due to the fact that corruption was at a very high level, we invited the authorities (and, fortunately, they supported it) … that the anti-corruption rules, anti-corruption Agency will change the rules for public procurement are investigating the activities of the companies that was a nest of illegal actions, and there will be legal reform. And it was all part of a program of economic recovery. The authorities agreed, and we just have to continue to move in this direction,” – said Lagarde.

IMF chief also expressed hope that the Fund’s mission in Ukraine will one day be properly appreciated as helping the country to stand on its feet.

Recall that Ukraine and the IMF in March 2015 signed a Memorandum of economic and financial policies which the country should undertake in the framework of the EFF. Just program worked for Ukraine of about $ 17 billion of which have already been allocated 7,7 billion dollars. So, in September 2016 after a delay of a year, the IMF has approved granting Ukraine the third tranche in the amount of one billion dollars.

The Cabinet of Ministers of Ukraine expects that the size of the fourth tranche of the IMF loan under the program of expanded financing will amount to 1 billion U.S. dollars.

The government has reported that one of the biggest obstacles to receiving the next loan tranche from the IMF is the Pension Fund deficit.

If the Fund will cease cooperation with Ukraine – it will be a signal to other lenders and investors who are closely watching the decision of the organization.