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

Video One Year After Thai Coup, No End in Sight for Military Rule

Since carrying out the May 22, 2014 coup, the general has retired from the military but is still firmly in charge More

Goodbye, New York

This is what the fastest-growing big cities in America have in common More

Job-Seeking Bangladeshis Risk Lives to Find Work

The number of Bangladeshi migrants on smugglers’ boats bound for Southeast Asian countries has soared in the past two years More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Turkey's Main Opposition Party Hopes for Election Breakthroughi
X
May 22, 2015 10:23 AM
Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Turkey's Main Opposition Party Hopes for Election Breakthrough

Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Europe Follows US Lead in Tackling ‘Conflict Minerals’

Metals mined from conflict zones in places like the Democratic Republic of Congo are often sold by warlords to buy weapons. This week European lawmakers voted to force manufacturers to prove that their supply chains are not inadvertently fueling conflicts and human rights abuses. Henry Ridgwell reports from London.
Video

Video Class Tackles Questions of Race, Discrimination

Unrest in some U.S. cities is more than just a trending news item at Ladue Middle School in St. Louis, Missouri. As VOA’s Kane Farabaugh reports, it’s a focus of a multicultural studies class engaging students in wide-ranging discussions about racial tensions and police aggression.
Video

Video Mind-Controlled Prosthetics Are Getting Closer

Scientists and engineers are making substantial advances towards the ultimate goal in prosthetics – creation of limbs that can be controlled by the wearer’s mind. Thanks to sophisticated sensors capable of picking up the brain’s signals, an amputee in Iceland is literally bringing us one step closer to that goal. VOA’s George Putic reports.
Video

Video Afghan Economy Sinks As Foreign Troops Depart

As international troops prepare to leave Afghanistan, and many foreign aid groups follow, Afghans are grappling with how the exodus will affect the country's fragile economy. Ayesha Tanzeem reports from the Afghan capital, Kabul.
Video

Video Poverty, Ignorance Force Underage Girls Into Marriage

The recent marriage of a 17-year old Chechen girl to a local police chief who was 30 years older and already had a wife caused an outcry in Russia and beyond. The bride was reportedly forced to marry and her parents were intimidated into giving their consent. The union spotlighted yet again the plight of many underage girls in developing countries. Zlatica Hoke reports poverty, ignorance and fear are behind the practice, especially in Asia and Africa.
Video

Video South Korea Marks Gwangju Uprising Anniversary

South Korea this week marked the 35th anniversary of a protest that turned deadly. The Gwangju Uprising is credited with starting the country’s democratic revolution after it was violently quelled by South Korea’s former military rulers. But as Jason Strother reports, some observers worry that democracy has recently been eroded.
Video

Video California’s Water System Not Created To Handle Current Drought

The drought in California is moving into its fourth year. While the state's governor is mandating a reduction in urban water use, most of the water used in California is for agriculture. But both city dwellers and farmers are feeling the impact of the drought. Some experts say the state’s water system was not created to handle long periods of drought. Elizabeth Lee reports from Ventura County, an agricultural region just northwest of Los Angeles.
Video

Video How to Clone a Mammoth: The Science of De-Extinction

An international team of scientists has sequenced the complete genome of the woolly mammoth. Led by the Swedish Museum of Natural History in Stockholm, the work opens the door to recreate the huge herbivore, which last roamed the Earth 4,000 years ago. VOA’s Rosanne Skirble considers the science of de-extinction and its place on the planet
Video

Video Blind Boy Defines His Life with Music

Cole Moran was born blind. He also has cognitive delays and other birth defects. He has to learn everything by ear. Nevertheless, the 12-year-old has had an insatiable love for music since he was born. VOA’s June Soh introduces us to the young phenomenal harmonica player.

VOA Blogs

World Currencies

EUR
USD
0.8957
JPY
USD
120.93
GBP
USD
0.6393
CAD
USD
1.2199
INR
USD
63.470

Rates may not be current.