WASHINGTON, October 10 (RIA Novosti) - Ukraine needs more financing, in addition to what Kiev has already received from the International Monetary Fund and western governments, the head of the IMF's European Department, Poul Thomsen said on Friday.
"Ukraine's international partners need to start thinking about if they can provide more support for the country," Thomsen said, adding that the IMF now sees "a somewhat higher financing need," but it is too early to say how much exactly is needed.
Thomsen added that despite the ceasefire between the Kiev's forces and the independence supporters of Donetsk and Luhansk, the situation in southeastern Ukraine continues to negatively affect the Ukrainian economy. "The conflict is beginning to take a toll on the real sector, on exports and on imports, spilling over into the balance of payments," he explained.
As a result of the ongoing political crisis in the country, Ukraine is currently on the verge of a default. Kiev authorities are trying to rescue the country's economy with international loans, including a $17 billion loan from the International Monetary Fund. To receive the IMF financial support, Ukraine agreed to a severe austerity program that includes raising taxes and selling off state assets.
Late in September, Ukrainian President Petro Poroshenko said that Ukraine will need to review its cooperation with the International Monetary Fund and receive additional aid from the United States and the European Union to bring stability to the country's currency market.
