Ukraine is set to receive a $15bn IMF stability grant
THE International Monetary Fund (IMF) is set to grant Ukraine $14.9bn (£12.3bn) to stabilise its ailing economy.
The “preliminary co-operation agreement” is good news for president Viktor Yanukovich, but is only offered on the basis his coalition government delivers upopular economic reforms, such as increasing the price of natural gas. Final approval would not be given unless some of the criteria are met before the IMF board meets this month.
“The goal of the authorities’ economic programme is to entrench fiscal and financial stability, advance structural reforms, and put Ukraine on a path of sustainable and balanced growth,” said the IMF.
Yanukovich promised to reform Ukraine’s economy, which shrank 15 per cent in 2009, but he has been accused of focusing instead on consolidating his political power, making closer links with Russia and restricting democratic freedom.
The IMF has already put $11bn towards keeping the stricken country afloat last year, but aid was stopped before the presidential election due to lack of economic reform.
Resuming economic aid points to newfound trust, especially as the Ukraine’s debt is 40 per cent of its gross domestic product.