The International Monetary Fund has warned Ukraine that it will block its $40bn bailout programme if Kyiv fails to confront crippling corruption.
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The International Monetary Fund has warned Ukraine that it will block its $40bn bailout programme if Kyiv fails to confront crippling corruption.
IMF chief accuses Kiev of dragging feet on reforms and threatens to withdraw financial aid https://t.co/WqyMpmzFkO pic.twitter.com/93NPBhh0ZE
— Sky News (@SkyNews) February 10, 2016
The IMF’s managing director, Christine Lagarde, said “Without a substantial new effort to invigorate governance reforms and fight corruption, it is hard to see how the IMF-supported programme can continue and be successful.”
IMF Lagarde's warning to President
poroshenko</a> is hard and clear. <a href="https://t.co/7mgGcCb6r0">pic.twitter.com/7mgGcCb6r0</a></p>— Anders Aslund (anders_aslund) February 10, 2016
The shot across the bows comes one week after the country’s economy minister Aivaras Abromavivius resigned.
A good man has quit the Ukraine government, sad!
Part of real hope is gone! Economy Minister Aivaras Abromavicius. pic.twitter.com/eyA5SpeQVg— Daniele Monigatti (@DMonigatti) February 7, 2016
The reform minded Abromavivius, much admired in Europe and the US, said “My team and I have no desire to be a screen for brazen corruption or puppets for people who want to take control over state funds in the style of the old government.”
Economy Minister Aivaras Abromavicius resigns in Kyiv on Feb https://t.co/qOpmOaOJ2X pic.twitter.com/nQMJGEF2SI
— Kiev Ukraine (@KievUkRRaine) February 5, 2016
The Ukraine economy is contracting at an annual rate of more than 7 percent and IMF cash has prevented a collapse in manufacturing output.
The IMF has held back $1.7bn since October amid fears the money will end up in the pockets of corrupt officials.