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Kerry Reportedly Suspends Ukraine's IMF Credit Line Over Lack of Reform

© REUTERS / Akintunde AkinleyeUS Secretary of State John Kerry
US Secretary of State John Kerry - Sputnik International
US Secretary of State insists on the suspension of International Monetary Fund credit to Ukraine.

A Ukrainian military convoy is pictured through a barbed wire fence at a military base in the town of Kramatorsk, eastern Ukraine - Sputnik International
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MOSCOW, January 30 (Sputnik) US Secretary of State John Kerry has insisted on the suspension of new International Monetary Fund (IMF)  credit to Ukraine, Vesti news outlet reported Friday, citing sources familiar with the situation.

“The Ukrainian talks on a new tranche allocation are struggling. And in the recent days, reportedly, US Secretary of State John Kerry visited the IMF headquarters personally and insisted on suspension of Ukrainian credit consideration,” the source told the media.

Kerry’s exact comments are unknown, though it is clear that there is disappointment by donors with the lack of promised reforms in Kiev, the source added.

The IMF is currently discussing with Ukraine an allocation of additional credit. The negotiations are supposed to last until next week.

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Ukraine's economy is suffering as a result of an ongoing internal political crisis. Kiev authorities are trying to rescue the country's economy using international loans, including a $17 billion loan from the IMF, which the organization approved May 2014.

To receive the IMF funds in full, Ukraine agreed to a severe austerity program that includes shedding 24,000 government jobs, raising taxes, privatizing state assets and withdrawing subsidies on natural gas.

The IMF said, however, that if fighting in Ukraine continues, the country will need additional funds.

Earlier in January, Ukrainian President Petro Poroshenko said that Kiev hopes to get $13-15 billion from international creditors including from the United States and the European Union over the next two years.

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