WASHINGTON, September 11 (RIA Novosti) – The International Monetary Fund (IMF) welcomes the ceasefire in Ukraine but notes that downside risks remain in the IMF bailout program, IMF spokesman William Murray said Thursday.
"We do welcome the agreement reached and the fact that the ceasefire has been broadly holding. The current assumption under the program is that the conflict will subside in the coming months and staff continues to monitor developments very closely. However, as we've noted many times there's significant downside risks in the program and we'll be updating on those as we progress," Murray said.
On September 4 Kiev received the second installment of about $1.39 billion under the IMF bailout program. The first loan tranche was transferred to Ukraine on May 7.
On August 29, the IMF approved the disbursement of about $1.39 billion to Ukraine. The organization approved its two-year $17 billion stand-by arrangement on April 30.
To receive the IMF funds in full, Ukraine agreed to a severe austerity program that includes shedding 24,000 government jobs, raising taxes, selling off state assets and withdrawing subsidies on natural gas.
Ukraine's economy has been suffering as a result of the internal conflict in the country, which started when Kiev forces launched a military operation against independence supporters in the southeastern regions in mid-April.
Kiev also has a significant gas debt which it owes to Russian gas giant Gazprom and which is estimated to stand at over $5 billion.
