IMF To Resume Cooperation With Ukraine After Presidential Election

KIEV, Ukraine -- International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn has said that the IMF will resume cooperation with Ukraine under the Stand-By Arrangement after the presidential election in the country, according to a statement posted on the IMF website.

Dominique Strauss-Kahn

“So I'm confident that as soon as this normally shaky electoral period will be over, it will be possible to resume a normal relationship with the [stand-by] program,” he said.

Strauss-Kahn said that the fund had closely cooperated with Ukraine and that the country had managed to make payments on its foreign commitments in December, including payments for gas imported from Russia.

“So we are working very closely with the Ukrainians. We worked with them during all the month of December... It's not that easy, but I guess it won't be easy in other countries with this kind of election and this kind of institution. So at the end of the day, we succeeded in having all the payment, especially the international payment. And then they made the gas payment to Russia being done, the situation is quiet even if there are some pressures on the economy,” he said.

“Well, it's not a secret that the program in Ukraine has run very well until three months ago. And then -- which could have been expected because of political constraints and the election coming -- the situation has been a bit more difficult,” he added.

On November 5, 2008, the IMF decided to allocate around USD 16.45 billion under the Stand-By Arrangement with the country.

On November 10, 2008, Ukraine received a first tranche worth USD 4.5 billion from the IMF.

On May 8, 2009, the IMF Executive Board approved the allocation of a second tranche worth USD 2.8 billion to Ukraine.

On July 31, 2009, the IMF transferred USD 3.3 billion as a third tranche to Ukraine.

The country's presidential election will be held on January 17, while a probable second round of voting is scheduled for February 7.

Source: BSANNA