IMF ready to start aid negotiations with Ukraine
The IMF fact-finding mission working in Kiev since March 4 has made good progress in assessing the situation," IMF managing director Christine Lagarde said in a statement.
"Following an informal briefing today of the IMF's Executive Board, management has asked the team to stay in Kiev and begin a process of negotiation."
The team is discussing conditions for a Europe and US-backed rescue loan with the Ukrainian authorities, as tensions mount over Russia's military incursion into Crimea.
Lagarde said the IMF team would work with the authorities to develop a reform program "that will result in sound economic governance and sustainable growth, while protecting the vulnerable in society."
Read more: http://digitaljournal.com/business/business/imf-ready-to-start-aid-negotiations-with-ukraine/article/376216#ixzz2vwoWJtnM source is AFP
UPDATE 2-IMF to start negotiations with Ukraine on aid program
IMF aid programs typically are accompanied by stringent conditions to ensure that a country will be able to fix its economy and make it grow. Canada, the European Union, the United States and other countries have promised to support Ukraine if an IMF program is put into place.
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The IMF's last loan program to Ukraine for $15 billion went awry when the government failed to implement reforms.
In the past, the IMF has asked Kiev to cut its large fiscal deficit, float its exchange rate, and phase out costly energy subsidies. Similar conditions are expected to be attached to any new IMF bailout package.
But some analysts have questioned the new government's ability to carry out unpopular reform measures.
http://www.reuters.com/article/2014/03/13/ukraine-crisis-imf-mission-idUSL2N0MA1Y320140313