Renewal of Kiev-IMF Cooperation to Strengthen Int’l Investors’ Trust

KIEV (Sputnik) – Renewal of cooperation between Kiev and the International Monetary Fund (IMF) is important for regaining trust of Ukraine’s international investors, deputy head of the National Bank of Ukraine (NBU) Oleg Churiy said Wednesday.

Last March, the IMF approved a four-year program of financial aid to Ukraine, which stipulates a $17.5-billion loan over the next four years in return for economic reforms. Kiev has already received two tranches under the financial aid program, but the third tranche is being delayed due to a political crisis in the country.

"The resumption of cooperation with the IMF is critical for regaining the trust of investors. Because receiving a tranche from the IMF is a signal that reforms in Ukraine are being implemented," Churiy said at a press conference.

IMF Managing Director Christine Lagarde said in February that Ukraine risked returning to a pattern of failed economic policies characterized by slow progress in fighting corruption and influence in policymaking, as well as in improving governance if Kiev did not make an effort to implement the necessary reforms.

Ukraine's economy has deteriorated since an armed conflict between government forces and militia in the country's southeast broke out in April 2014.

Kiev has been forced to increasingly rely on external funding to reanimate the economy amid a deep recession and high inflation.