More aid to Ukraine
January 13, 2015
The aid would be contingent on the country staying on course to meet the conditions of an IMF-backed economic reform program, the US Treasury Department said Tuesday.
"The US support that I am announcing today will be part of a broader international package of support to help ensure the success of Ukraine's reform program and ultimately restore financial stability, unleash economic potential, and allow Ukraine's people to better achieve their economic aspirations," said Treasury Secretary Jacob Lew in a statement.
"We are encouraged by the strong reform progress made by the Ukrainian authorities to date, and applaud their strong cooperation with the IMF and their continued commitment to difficult but necessary reforms," Lew added.
IMF officials are in Kiev this week to resume negotiations on the package, currently worth $17 billion. Ukraine's government hopes the IMF's visit will lead to a bigger aid program.
But the IMF and the European Union, which last week offered an additional 1.8 billion euros ($ 2.1 billion) to Ukraine, fear Kiev could abandon some of its economic pledges, including reforming the nation's energy and banking sectors as well as tackling widespread graft.
Ukraine's foreign currency reserves were down to just over $7.5 billion at the start of the year, the lowest in 10 years and barely enough to cover five weeks of imports. The country has so far received at least five IMF loans since the 1990s.
The new potential US financial support follows on the heels of nearly $340 million in assistance provided to Ukraine in 2014, in addition to a $1 billion sovereign loan guarantee extended last May.
sri/nz (Reuters, AFP)