IMF says Ukraine must complete debt restructuring for loan

IMF says Ukraine must complete debt restructuring for loan

Home Thu Apr 30, 2015 5:46PM

The International Monetary Fund (IMF) has said that Ukraine must complete within weeks a debt restructuring with private creditors in order to pass the first review of an IMF loan program.

IMF spokesman, Gerry Rice, said on Thursday that the first review of a 17.5-billion-dollar IMF loan program to Kiev on May 12 would soon begin by a team from the US-based fund agency, AFP reported.

“It is vital that Ukraine and creditors reach agreement … and do so before we complete our review,” Rice said, adding, “We need the financing assurances to be in place … in order to proceed.”

“We want and expect that outcome,” he said, explaining that the debt restructuring is an important part of IMF’s four-year, USD-40-billion bailout program devised for the Western-backed Ukrainian government in March.

The IMF has acknowledged that the risks to its program are “exceptionally high,” considering Ukraine’s history of not fulfilling the requirements of earlier programs as well as the persisting conflict between Kiev and pro-Russia forces who are vying for independence.

The IMF spokesman also said it will take two to three weeks to complete the review process, which measures Kiev’s performance in compliance with fiscal and reform objectives of the loan plan in order to allow the release of the next tranche of funds under the program.

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