Ukraine's finance minister says IMF will delay aid

IMF will delay financial aid to Ukraine due to political obscurity, Ukraine's Finance Minister Natalia Yaresko says

Photo by: AFP
Photo by: AFP

Ukrainian Finance Minister Natalia Yaresko

The International Monetary Fund (IMF) will provide more aid to Ukraine until the next government moves forward with promised reforms, Ukraine’s Finance Minister, Natalia Yaresko, said on Monday.

Ukraine has been waiting for IMF to provide more aid since last October, as part of a $40 billion package. The possible aid to the war-torn country aims to make the country’s economy competitive and reduce corruption.

The third tranche worth $1.7 billion has been delayed, due to the failure of Prime Minister Arseny Yatseniuk’s government implementing reforms.

Speaking on the Ukrainian TV channel ICTV, Finance Minister Yaresko said that "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 fulfil the conditions under which they have already provided us with $6.7 billion."

Last week, Economy Minister, Aivaras Abromavicius, resigned from the government, stating that he would not be a “puppet” and accused his close ally, President Poroshenko, of hijacking his ministry.

IMF Director, Christine Lagarde, called Abromavicius' resignation a “concern,” but she confirmed that there has been no change for Ukraine’s funding programme.

Ukrainian economy counts on financial aid from the IMF, the United States and the European Union to become afloat. The country’s economy drooped more than 10 percent last year due to its eastern industrial region being captured by pro-Russian separatists.

TRTWorld and agencies