(MENAFN) Due to the sluggish performance and progress in handling corruption and improving governance, the International Monetary Fund threatened to cut vital financial aid to cash-strapped Ukraine.
Acting on these serious threats would freeze all future lending under the USD17.5 billion four-year aid program agreed in March 2015 on the condition that the broke East European nation delivers strong reforms.
The IMF program is the keystone of nearly USD40bn global bailout of Ukraine that could collapse, with certain tragic costs for a country reeling from a severe recession and a pro-Russian insurgency in the east.
"Without a substantial new effort to invigorate governance reforms and fight corruption, it is hard to see how the IMF-supported program can continue and be successful," stated the IMF managing director.
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