WASHINGTON: IMF chief Christine Lagarde voiced confidence yesterday that Ukraine would meet conditions of a bailout and stabilise its economy, which is reeling after Russia’s takeover of Crimea.
Lagarde said that she expects to present a bailout plan, which would total $14-18bn over two years, to the International Monetary Fund’s board of governors in late April or early May.
She expects Ukraine to “deliver on its commitments” despite concerns about the health of the Kiev government, which has been in power since just February following an uprising and faces heated tensions from Russia. “We generally do not enter into negotiations with the idea that the programme is going to fail,” Lagarde told reporters at the IMF/World Bank annual spring meetings. The package’s goal will be for Ukraine to “restore its financial situation so that it can finance itself, refinance itself and operate without support from the IMF.”
Western nations have voiced support for economic support of Ukraine, but an IMF bailout could test the popularity of the new government, which will have to agree to tough austerity measures.
Russian President Vladimir Putin has kept ramping up pressure on Ukraine, warning that Moscow could cut gas supplies if the country does not settle its $2.2bn energy bill. AFP
