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. Last Updated: 07/27/2016

IMF Eyes Loan for Ukraine




KIEV -- The International Monetary Fund will send another mission to Ukraine before deciding whether to continue disbursing a $2.2 billion loan to the former Soviet republic, a fund official said Monday.


An IMF team finished negotiations with the Ukrainian government in Kiev last week, but left the country without announcing whether Ukraine qualified for the next tranche of the loan, which was approved in September.


"There will be another mission to Ukraine'' before the fund considers further disbursement, Patrick Lenain, head of the IMF's Kiev office, said in a telephone interview.


The IMF official said the date for the next visit has not been set.


After last week's talks, the IMF expressed concerns over the government's failure to raise enough revenues, and said reforms in the key sectors of Ukrainian economy - energy and agriculture - and administrative reform were going too slowly.


The fund also criticized Ukraine's proposals for a limited money emission to pay off some government debts, saying in a statement Friday that "would risk aggravating the financial situation.''


Ukraine has already received about $240 million of the IMF's three-year loan since September, but each new tranche is conditioned on the government's step-by-step implementation of a reform program agreed with the fund.


"Further resources from the IMF are likely to be disbursed as soon as'' the government introduces all the required reforms, the fund's statement said.