News / Economy

China Backs Financial Aid for Ukraine

FILE - China's Vice Finance Minister Zhu Guangyao
FILE - China's Vice Finance Minister Zhu Guangyao
Reuters
China said on Saturday it backed IMF financial support for Ukraine, but expressed concern about the global lender's funding capacity given the failure of the U.S. Congress to ratify a program of reforms for the institution.

 Chinese Vice Finance Minister Zhu Guangyao told a small group of Western journalists on the sidelines of the IMF-World Bank spring meetings in Washington it was a "worry'' that more than 85 percent of IMF lending was currently focused on Europe.

Zhu highlighted the importance of reacting quickly to any problems that arise in regions outside Europe, adding: "That is why IMF financial capacity has become so important.''

Zhu said China was worried about the potential impact of the Ukraine crisis, especially on Europe, which was already facing risk from deflation.

"This is a geopolitical issue too. We hope that event of geopolitical risk won't cause a big shock for the global economy, particularly for ... Europe's economy.''

"That's why we support any action necessary to calm down the tension and to stabilize the economy, including Ukraine's economy,'' Zhu said.

Russia and the European Union have exchanged recriminations since Russia annexed Ukraine's Crimea region in March and financial aid to Ukraine became a hot topic at a meeting of finance ministers from the Group of 20 leading nations.

 In addition to supporting the IMF program for Ukraine, which Zhu said was subject to finalization by the IMF board, China was keeping in close bilateral contact with Kiev, with which it had many areas of cooperation in agriculture and industry.

"We will continually expand our cooperation,'' Zhu said.

Zhu gave no details of how much China would contribute to the program for Ukraine, but said ``voting support for the program  means financial support because China is a key member of the IMF.''

The IMF has pledged to cover Ukraine's financing needs of $27 billion over the next two years and the head of the IMF's European department, Reza Moghadam, said on Friday that the Fund was able to lend to Ukraine because the country's debt was sustainable.

 Moghadam said the exact size of the IMF program would depend on how much other international lenders like the EU would contribute to the government in Kyiv.

Need to strengthen IMF

Zhu said the crisis showed the need to strengthen the financial capacity of the IMF and that China hoped the U.S. Congress could move quickly to break an impasse on the issue.

IMF members agreed reforms in 2010 that would double the Fund's resources and give more say to emerging markets, but the U.S. Congress has failed to ratify the changes.

Some U.S. Republicans have complained the changes would cost too much at a time Washington is running big budget deficits. The reforms also ran afoul of a growing isolationist trend among the party's influential Tea Party wing.

Zhu said there was "deep disappointment and frustration'' expressed at the impasse by all participants in Friday's G20 meeting, which set a year-end deadline for U.S. ratification.

"During the period before the end of the year, we are certainly continuing very full cooperation with the IMF and we hope this difficult time - particularly Ukraine - the IMF plays quick and strong action,'' Zhu said. "We support that.''

Some G20 officials have suggested moving ahead on IMF reforms without the United States, although U.S. approval would be necessary for any major decision to go forward because of Washington's controlling share of IMF votes.

Zhu did not respond when asked what China thought should be done if the issue was not resolved by the year end.

You May Like

Ebola Death Toll Nears 5,000 as Virus Advances

West Africa bears heaviest burden; Mali toddler’s death raises new fears More

Jordan’s Battle With Islamic State Militants Carries Domestic Risks

Despite Western concerns that IS militants are preparing a Jordanian offensive, analysts call the kingdom's solid intel a strong deterrent More

Asian-Americans Assume Office in Record Numbers

Steadily deepening engagement in local politics pays off for politicians like Chinese-American Judy Chu More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video Comanche Chief Quanah Parker’s Century-Old House Falling Apart

One of the most fascinating people in U.S. history was Quanah Parker, the last chief of the American Indian tribe, the Comanche. He was the son of a Comanche warrior and a white woman who had been captured by the Indians. Parker was a fierce warrior until 1875 when he led his people to Fort Sill, Oklahoma, and took on a new, peaceful life. As VOA’s Greg Flakus reports from Cache, Oklahoma, Quanah’s image remains strong among his people, but part of his heritage is in danger of disappearing.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid

World Currencies

EUR
USD
0.7893
JPY
USD
107.68
GBP
USD
0.6238
CAD
USD
1.1214
INR
USD
61.185

Rates may not be current.