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
 Nov 26 2014 - Kuwait's Mabanee to invest USD910m on projectMENAFN
(MENAFN) Mabanee, the Kuwaiti real estate firm, announced it is planning to spend USD910 million on building the fourth phase of its development of The Avenues mall, Arabian Business reported.The ...

 Nov 26 2014 - Oman's Sezad, OOC sign MoU on Duqm refineryMENAFN
(MENAFN) The Special Economic Zone Authority of Duqm (Sezad) announced it has signed a Memorandum of Understanding with the Oman Oil Company (OOC) regarding construction work on the planned refinery ...

 Nov 26 2014 - Emirates Airlines adds new flight to Maldives routeMENAFN
(MENAFN) Dubai's Emirates Airline announced it has added a third daily service to Mal", the capital of the Maldives, which will begin servicing passengers on December 1, Arabian Business reported.The ...

 Nov 26 2014 - Abu Dhabi Int'l passenger traffic up 17 percent in OctoberMENAFN
(MENAFN) Abu Dhabi International Airport announced that it registered an increase by 17 percent in its passenger in October, Arabian Business reported.The airport said that it has registered a total ...

 Nov 26 2014 - Oman's Rolls-Royce sales grow 46 percent in Jan.-Oct.MENAFN
(MENAFN) Rolls-Royce Motors announced it has registered an increase in its sales in Oman by 46 percent during the January-October period, compared to the same period last year, Times of Oman ...

 Nov 26 2014 - GCC petrochemical industry to decline on falling oil pricesMENAFN
(MENAFN) Gulf countries' petrochemical industry is expected to begin facing challenges due to the falling of oil prices, US shale gas and China's polyethylene, Khaleej Times reported.These factors ...

 Nov 26 2014 - Syrian economy decline 40 percentMENAFN
(MENAFN) According to the Undersecretary General for Humanitarian Affairs and Emergency Relief Coordinator, Syria's economy has declined by almost 40 percent since 2011, due to the effects of the ...

 Nov 26 2014 - Qatar to invest USD43.62b on railways infrastructureMENAFN
Qatar's Ministry of Transportation announced it is currently working on the development of advanced transport infrastructure in the country, with several projects currently in the planning stages or ...

 Nov 26 2014 - Dubai's Kcal to expand to EgyptMENAFN
(MENAFN) Kcal, the Dubai-based restaurant chain announced it is planning to expand its business in the MENA region with its first store slated to open in Egypt by December this year, followed by 14 ...

 Nov 26 2014 - MENA's value of M&A deals hit USD9.3b in Q3MENAFN
(MENAFN) The Middle East and North Africa's (MENA) merger and acquisition activity increased by 17 percent during the July-September period of this year, with 109 deals announced compared with 93 ...

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