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    Ukrainian President Petro Poroshenko welcomes International Monetary Fund (IMF) Managing Director Christine Lagarde ahead of their meeting in Kiev, Ukraine, September 6, 2015

    IMF to Approve More Funds for Ukraine After Gov't Survives Parliament Vote

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    Crisis in Ukraine (116)
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    The success of the Ukrainian government in surviving a no-confidence vote opens the way for the International Monetary Fund (IMF) to complete a second review and approve more funds, Goldman Sachs said in a report acquired by RIA Novosti.

    WASHINGTON (Sputnik) — On Tuesday, the Ukrainian parliament failed to pass a resolution of no-confidence to force the government of Prime Minister Arseny Yatsenyuk to resign.

    "The failure of the no-confidence vote and the resignation of the Prosecutor General likely pave the way for the upcoming IMF review and disbursement to take place, provided that the coalition remains intact," the report, received by RIA Novosti on Wednesday, stated.

    Yatsenyuk described the ongoing political crisis in the country as being "artificial" and urged Ukrainians to continue on the course of reforms.

    Goldman Sachs argued the no-confidence vote brings into question the government’s ability to complete the reforms required under the IMF’s four-year program of financial aid to Ukraine.

    "Yesterday’s vote underscores the fragmentation of the current administration, calls into question its ability to push reforms forward and increases the risk that elections will take place sooner rather than later."

    Nevertheless, Goldman Sachs suggested that Kiev has likely satisfied most of the IMF requirements for a second review, adding that concerns about the Ukraine’s political stability were the main factor holding the review back.

    "Barring further short-term risks to the coalition and government, the failure of the no-confidence vote… likely paves the way for the upcoming IMF review and disbursement of around US$1.8billion."

    On March 11, the IMF approved a four-year program of financial aid to Ukraine, which stipulates a $17.5 billion loan over the next four years. The Ukrainian government in turn has to implement new economic policies for the IMF to disburse the funds.

    During its reviews, the IMF determines whether the country’s authorities have taken and implemented the necessary measures to be provided more funds.

    Ukraine's debt is estimated at $50 billion.

    Topic:
    Crisis in Ukraine (116)

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    International Monetary Fund, Arseniy Yatsenyuk, Ukraine
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