19:26 GMT30 May 2020
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    Ukrainian authorities need some more time to implement policies to ensure medium-term fiscal sustainability, including adoption of the 2017 budget consistent with program targets - safeguard financial stability and tackle corruption, according to the International Monetary Fund (IMF).

    WASHINGTON (Sputnik) — Ukraine needs more time to implement economic reforms required to receive the next tranche of financial aid, the International Monetary Fund (IMF) said in a statement on Friday.

    "While good progress has been made, the authorities need some more time to implement policies to ensure medium-term fiscal sustainability — including adoption of the 2017 budget consistent with program targets — safeguard financial stability and tackle corruption," the statement said. "Discussions on these policies will continue in the period ahead."

    The IMF mission visited Ukraine from November 3-17 to review economic progress that will determine whether the IMF allocates the next tranche of up to $1.3 billion to Kiev before the end of the year.

    The mission noted that the Ukrainian economy is showing signs of recovery and growth is expected to reach 1.5 percent in 2016. However, per capita GDP remains at the second lowest in Central and Eastern Europe.

    Kiev should accelerate reform of inefficient state-owned enterprises, tackle corruption and continue fiscal consolidation to ensure debt sustainability, the statement said.

    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 next four years and originally open for review on a quarterly basis.

    Ukraine heavily relies on foreign aid to support its economy and to pay debts amid the ongoing armed conflict with independence supporters in the country's southeast.


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    economic reforms, International Monetary Fund, Ukraine
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