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
 May 23 2015 - Oman's ORPIC takes out USD910m loanMENAFN
(MENAFN) Oman Oil Refineries and Petroleum Industries Co. (ORPIC) has taken out a USD910 million ten-year loan from local and regional banks, Arab News reported.The money will be used to "meet ...

 May 23 2015 - Jordan's economy grows 3.8 percent amid political crisesMENAFN
(MENAFN) Jordan's economy is robust despite spillover violence along its borders from wars in Syria and Iraq, the central bank governor said, Arab News reported.Weak oil prices that have cut the ...

 May 23 2015 - Egypt to launch USD3b LNG tender over 2016-17MENAFN
(MENAFN) Egypt is set to launch what will be a highly sought after tender in early June to buy up to USD3 billion of liquefied natural gas (LNG) over 2016 and 2017, Arab News reported.Egypt has ...

 May 23 2015 - Iraqi forces clear path to key refinery: USThe Peninsula
(MENAFN - The Peninsula) Iraqi troops fighting Islamic State group forces have cleared a ground route into the country's largest oil refinery, the US military said Friday. "Iraqi Security Forces and ...

 May 23 2015 - Priest kidnapped in Homs region of Syria: NGOThe Peninsula
(MENAFN - The Peninsula) A priest of the Syriac Catholic Church in the western Syrian city of Homs was kidnapped Thursday along with one of his colleagues, the NGO l'Oeuvre d'Orient told AFP Friday. ...

 May 23 2015 - Suicide bomber in deadly attack on Shia mosque: SaudiThe Peninsula
(MENAFN - The Peninsula) A suicide bomber set off an explosion during weekly prayers in a Shia mosque of eastern Saudi Arabia leaving many dead Friday, the interior ministry said. "It has been ...

 May 23 2015 - Iraqi forces to launch Ramadi fightback in 'coming days'The Peninsula
(MENAFN - The Peninsula) Iraqi government and allied forces will launch an offensive aimed at retaking the city of Ramadi from the Islamic State group in the coming days, a spokesman said on Friday. ...

 May 23 2015 - Iraq- 55,000 have fled IS-captured Ramadi since mid-May: UNThe Peninsula
(MENAFN - The Peninsula) The United Nations said Friday that around 55,000 people had fled Ramadi since a surge by the Islamic State group in mid-May that landed the Iraqi provincial capital in the ...

 May 23 2015 - IS capture of Palmyra 'threat' to key site: Arab LeagueThe Peninsula
(MENAFN - The Peninsula) The Arab League on Friday condemned the Islamic State group's capture of Palmyra, saying the Syrian city's seizure posed an "eminent threat" to the international heritage ...

 May 23 2015 - Sudan Islamists protest against Morsi death sentenceThe Peninsula
(MENAFN - The Peninsula) Hundreds of Sudanese Islamists protested outside a UN office in central Khartoum Friday against the death sentence handed down to Egypt's ousted president Mohamed Morsi by a ...

more...


 






Google

 
 

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