IMF tells Ukraine it will suffer if it doesn't cut
Wednesday 13 February 2013
Printable
EmailGlobal financiers at the International Monetary Fund piled the pressure on Ukraine today to cut fuel subsidies in return for loans, warning it faces "serious challenges" in the year ahead.
Ukraine is seeking a $15 billion (£9.6bn) loan to help cope with around $10bn (£6bn) of foreign debt repayments scheduled this year.
An earlier loan deal was suspended when President Viktor Yanukovich refused to scrap household fuel subsidies.
Rounding off a two-week trip to Ukraine, the IMF's Christopher Jarvis said the subsidies "continue to undermine Ukraine's budget and its balance of payments."
It's not clear whether Kiev has offered any concessions on the issue, but no deal has yet been drafted.
Economy Minister Ihor Prasolov said that "technical" talks would start soon and a third visit would wrap up the deal.
The IMF has promised to return to loan talks in March.
If you appreciated this article then please consider donating to the Morning Star's Fighting Fund to ensure we can keep developing your paper.
Editorial
Exploit Tory woes, Labour
Lord Feldman says that he didn't call grassroots Tories "mad swivel-eyed loons" while his accusers stand by their stories that he did.
Features
Let's get Britain back on track
As Aslef's annual assembly of delegates begins in Edinburgh tomorrow the general secretary explains the challenges his members - and workers across the country - face
The vicious cycle of eurozone decline
France is the latest to face clamour from the EU to enforce crippling 'structural reforms.' The medicine is killing the patient