Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

IMF 'strongly hopes' Kiev will honour its commitments  Join our daily free Newsletter

MENAFN - AFP - 09/05/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - AFP) International Monetary Fund chief Christine Lagarde said Friday that she "strongly hoped" Ukraine would honour commitments linked to a 17 billion aid package agreed last month but which could be reviewed.

The IMF said in a report last week that the rescue programme would have to be "re-designed" if Kiev loses control of the economically important eastern region to pro-Russian separatists, who are preparing a referendum in eastern Ukraine cities on Sunday.

"We are following the situation very closely and we strongly hope the Ukrainian authorities will respect the commitments of the programme," Lagarde said, speaking in Morocco.

She confirmed Kiev had received the first 3.2 billion tranche of IMF aid, first announced by the Ukraine's central bank on Wednesday.

"What it hinges on for us is the determination of the authorities to respect their commitments and implement them," Lagarde said.

As well as supporting the Ukrainian economy, the programme "serves as a catalyst for supporting... other financial institutions or partners in a bilateral plan," she added.

The rescue package is part of a larger 27 billion deal involving loans from the World Bank and the European Union aimed at strengthening the country under its new pro-Western government.

But the fund warned on May 1, shortly after the emergency loan was announced, that there were deep risks to its successful implementation, including the quickly eroding economy, corruption, and the current and future government's ability to implement much-needed reforms.

And it made clear that Kiev's failure to maintain control of the pro-Moscow east would threaten the entire loan programme.

"Should the central government lose effective control over the east, the programme will need to be re-designed," the Washington-based institution warned.

Russia's annexation of Crimea in March -- which is not recognised by the West or other major powers -- represents a loss of around 3.7 percent of Ukraine's GDP, and does not have a significant impact on the government's needs, the fund said.

But the potential secession of the highly industrialised eastern region would have serious economic consequences.

The three provinces of Donetsk, Lugansk, and Kharkiv account for about 21.5 percent of GDP and 30 percent of total industrial production.

Two days before the planned separatist vote, eastern Ukraine was rocked by more deadly violence, with some 20 rebels and a policeman killed in clashes between Ukrainian troops and pro-Moscow militants in the southeastern port city of Mariupol.

Also on Friday, Russian President Vladimir Putin visited Crimea for the first time since its annexation, drawing a sharp rebuke from authorities in Kiev.

Putin has warned that if Kiev does not pay the 3.5 billion bill that state-run Russian gas firm Gazprom says it owes, he could turn off the taps, which would also affect several European countries.

The IMF has forecast a sharp recession in Ukraine this year -- of five percent negative growth -- with public debt expected to reach 56.5 percent of GDP, compared with 40.9 percent in 2013.


 


AFP




  MENA News Headlines
 Aug 28 2015 - UAE's DP World profits logs 22 percent growth in H1MENAFN
(MENAFN) Global marine terminal operator DP World declared a surge of 22 percent in its net profit in the first six months, recording USD405 million compared to USD322 million in 2014, plus total ...

 Aug 28 2015 - Oman's fiscal deficit to expand at 12 percent of GDPMENAFN
(MENAFN) Oman's very high economic dependence on gas sector is going to add pressure to the public finance in 2015-16, although it has an ongoing solid economic growth.Meanwhile, the country's fiscal ...

 Aug 28 2015 - Saudi's foreign reserves shrink down 0.5 percent in JulyMENAFN
(MENAFN) The world's largest oil exporter has begun issuing domestic debt aiming at covering part of a budget deficit cause by low oil prices, and the result was that the speed of deterioration in ...

 Aug 28 2015 - UAE cuts September petrol prices as global oil fallsGulf Times
(MENAFN - Gulf Times) The UAE cut petrol and diesel prices by between 8% and 9% for September, the second month during which the Middle Eastern country, Opec's fifth-largest oil producer, removed ...

 Aug 28 2015 - Algeria targets hidden $40bn amid ignored oil-price pleasGulf Times
(MENAFN - Gulf Times) Day and night, trucks trundle the 10 miles from Algiers port to the suburb of Semmar, where workers unload and stack goods that will feed into a vast black market.Merchants pack ...

 Aug 28 2015 - Egypt power choices appease public, but squeeze industryGulf Times
(MENAFN - Gulf Times) Far fewer Egyptians are complaining about the kind of power cuts that fuelled unrest in the past but government energy policies apparently focused on appeasing the public are ...

 Aug 28 2015 - Saudis seek guidance on economy as stocks gyrateGulf Times
(MENAFN - Gulf Times) Saudi plastic surgeon and stock-market investor Sami al-Harki is looking for help.Al-Harki already lost 40% on his shares, but doesn't want to sell before the Saudi government ...

 Aug 28 2015 - US- Short-handed Giants beat CubsGulf Times
(MENAFN - Gulf Times) Joe Bochy, a San Francisco Giants scout, is in town to help evaluate the club on this homestand. Maybe he can turn in a report on his kid brother, Bruce.When you win with a ...

 Aug 28 2015 - Jordan- Rania: Muslims must do more to counter ISGulf Times
(MENAFN - Gulf Times) Queen Rania of Jordan said yesterday that moderate Muslims were not doing enough to fight against IS militants and their "diabolical ideology". Speaking at a major French ...

 Aug 28 2015 - Abbas heats up Palestinian politics in PLO reshuffle bidGulf Times
(MENAFN - Gulf Times) President Mahmoud Abbas is acting to shake up Palestinian politics, with peace talks with Israel in deep freeze and unity efforts with Hamas Islamists who run the Gaza Strip ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help