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.



  MENA News Headlines
 Nov 30 2015 - Kuwait oil minister leaves post days before Opec meetingGulf Times
(MENAFN - Gulf Times) Kuwait named Deputy Prime Minister Anas al-Saleh as acting oil minister to replace Ali al-Omair (pictured) who became minister of public affairs and retained his role as state ...

 Nov 30 2015 - Dana Gas wins $1.98bn Kurdistan judgementGulf Times
(MENAFN - Gulf Times) ...

 Nov 30 2015 - India's SpiceJet 'receives' interest from Gulf airlinesGulf Times
(MENAFN - Gulf Times) Indian budget carrier SpiceJet Ltd, which has surged more than 280% this year, said it's received interest from Gulf airlines looking to acquire a stake."Some of the Gulf ...

 Nov 30 2015 - Qatar- Investment in healthcare makes for a healthy economyGulf Times
(MENAFN - Gulf Times) Under the wise and dynamic leadership of His Highness the Emir, Sheikh Tamim bin Hamad al-Thani, the growth and improvement in quality of Qatar's health sector has been a major ...

 Nov 30 2015 - GCC should adopt a holistic approach to managing urban water supply: ExpertGulf Times
(MENAFN - Gulf Times) The GCC (Gulf Cooperation Council) region should adopt a holistic approach to managing urban water supply, according to an expert at the Qatar Environment and Energy Research ...

 Nov 30 2015 - Brent crude dips on firm dollar ahead of OPEC meetingGulf Times
(MENAFN - Gulf Times) Brent crude futures dipped on Monday as traders remained cautious ahead of an OPEC meeting later this week and as a widely expected US interest rate hike strengthened the ...

 Nov 30 2015 - India- Kerala expects more tourists from the GulfGulf Times
(MENAFN - Gulf Times) Encouraged by the response it received at the Arabian Travel Mart held in Dubai in May, Kerala Tourism is conducting a series of roadshows in the Gulf region.The tourism board ...

 Nov 30 2015 - Carson meets Syrian refugees, opposes them coming to USGulf Times
(MENAFN - Gulf Times) Republican presidential candidate Ben Carson, who last week compared Syrian refugees to "rabid dogs," met with refugees in Jordan on Saturday and urged the US government to do ...

 Nov 30 2015 - IS executes 3,500 in Syria since declaring 'caliphate'Gulf Times
(MENAFN - Gulf Times) The Islamic State group has executed more than 3,500 people in Syria, including nearly 2,000 civilians, since declaring its 'caliphate' in June last year, a monitor said ...

 Nov 30 2015 - 16 killed in fighting for south Yemen provinceGulf Times
(MENAFN - Gulf Times) Yemeni loyalists supported by a Saudi-led coalition battled on Sunday to oust Iran-backed rebels from a southern province where they have made gains in recent weeks, with at ...




Click to Apply


Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

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


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


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