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. Last Updated: 07/27/2016

Kiev Audit: No Fund Misuse




KIEV -- Ukraine's central bank said on Friday the second half of a foreign audit of its financial transactions was complete and showed no misuse of International Monetary Fund loans.


In January, the central bank asked auditors PricewaterhouseCoopers to review its financial activities in recent years to address allegations it had misused IMF loans.


"The second stage of the audit is completed," central bank chairman Volodymyr Stelmakh told a news conference. "It confirmed there had been no misuse of funds."


In earlier findings reviewing central bank transactions in 1997-98, the auditors said Ukraine had overstated its reserves by up to $713 million, enabling it to win loans of $200 million that the IMF might otherwise have withheld.


Ukrainian officials, however, have denied all wrongdoing and say different accounting systems were to blame.


The IMF, which froze its $2.6 billion program to Ukraine last September because of slow reforms, said earlier this year it would not lend to Ukraine until the audit had been finalized.


In Washington, IMF spokeswoman Kathleen White confirmed the IMF had received the second audit, but she declined to comment on the Ukrainian statements that the report showed no evidence of misuse of funds.


Ukraine is anxious for the IMF to restart a stalled lending program, and a Ukrainian delegation is expected to fly to Washington in mid-July.