IMF Head Calls on Ukraine Leader to Accelerate Reforms

Christine Lagarde urged Petro Poroshenko in a telephone conversation to avoid backpedalling on his commitments to adopt reforms.

WASHINGTON (Sputnik) – Managing Director of the International Monetary Fund (IMF) Christine Lagarde urged Ukrainian President Petro Poroshenko in a telephone conversation Friday to avoid backpedalling on his commitments to adopt reforms.

"The Managing Director… stressed the need for continued support for the agreed reforms and to prevent delays or policy reversals," the IMF said in a statement.

Details of the conversation published on Poroshenko’s website stated that Lagarde was informed that Kiev had commenced reforms in the banking, taxation and judicial sectors, as well as taking steps towards decentralization.

The IMF approved a $17.5 billion package to stabilize Ukraine's economy on March 11 in exchange for Kiev's vow to implement a series of complex reforms. So far, Ukraine has received the first tranche of $5 billion and expects to receive another $10 billion by the end of 2015.

Earlier this month, the Washington-based financial institution and Ukrainian authorities agreed on the policies Kiev must enforce in order to begin receiving the IMF loan.

Lagarde signalled earlier this week that Ukraine was edging closer to securing the IMF’s next tranche. The institution has previously signalled that it will continue to lend to Kiev, whose total debt is estimated at $50 billion, even if it misses debt repayments.