IMF to Continue Supporting Ukraine After PrivatBank Nationalization - Lagarde

IMF Managing Director Christine Lagarde called the decision of Ukrainian authorities to nationalize PrivatBank "an important step to safeguard financial stability."

WASHINGTON (Sputnik) — The International Monetary Fund will continue to back Ukraine’s efforts to reform its economy following the nationalization of the country’s largest bank, IMF Managing Director Christine Lagarde said in a statement on Monday.

"Today’s decision of Ukrainian authorities to nationalize PrivatBank is an important step in their efforts to safeguard financial stability," Lagarde stated. "The IMF will continue to support Ukraine in its efforts to build strong institutions, enhance transparency, and advance structural reforms."

Kiev decided to nationalize PrivatBank after the National Bank of Ukraine declared it insolvent on Sunday.

Lagarde praised the move but stressed that Kiev’s recent efforts to strengthen the nation’s economy have been insufficient.

Furthermore, she urged Ukraine to appoint an independent team to restore PrivatBank’s viability and work to get related loans repaid.

In March 2015, the IMF approved a four-year program of financial aid to Ukraine, which stipulates a $17.5-billion loan to be paid out in installments over the program period and originally open for review on a quarterly basis. The bailout package for Ukraine requires that Kiev implement a number of reforms.

Ukraine expects to receive the fourth tranche of $1.3 billion in January-February 2017.