Ukrainian Prime Minister Arseniy Yatsenyuk shakes hands with U.S. Secretary of State John Kerry before they meet at the Cabinet of Ministers in Kiev, Ukraine, on February 5, 2015
Washington DC has decided to continue its aid to the beleaguered Ukraine, offering large-scale economic assistance plus support for additional IMF bailouts. The goal of the assistance, financial and technical, is to help Ukraine overcome the consequences of the Donbass crisis, as well as to carry out economic and political reforms.
Ukrainian leaders President Petro Poroshenko, Prime Minister Arseniy Yatsenyuk, and US Secretary of State John Kerry met on February 5th, to discuss ways to end the Donbas crisis were discussed, as well as economic and political reforms. After the meeting Kerry said he was optimistic that the IMF and Ukraine would be able to put together and agree on new aid programs.
“I cannot give you a probability because the decision as to whether or not the IMF makes an agreement depends on a set of IMF internal standards that have to be met,” Kerry said. “I’m confident, however, that the government is going to do everything in its power to meet those standards, to make sure that they qualify, and then to deliver. So I would hope, and we are anticipating, that there will be an IMF loan.”
In order to avoid default, Ukraine needs about $15 billion in additional aid, said Ukrainian and IMF officials. IMF Managing Director Christine Lagarde said on February 12th that the IMF and Ukraine were able to reach an agreement on a new financial bailout package of about $17.5 billion. The final decision about whether to apply the agreement will be made within the month, said IMF representatives.
Kerry’s statement seems to indicate that Kiev can expect to receive the funds.
