News / Europe

IMF Predicts Unsettled Ukraine Will Meet Its Debt Payments

Ken Bredemeier
The International Monetary Fund (IMF) is sending loan money to Kyiv to help the embattled Ukrainian government boost the country's weak economy. But as Ukraine seeks to root out long-standing corruption in the government and block Russian intervention in eastern Ukraine, even the IMF said the loan approval could be risky.

The director of the IMF's European department, Reza Moghadam, told reporters Thursday that the Washington-based agency expects Ukraine to meet all its financial obligations, even as it teeters on the brink of bankruptcy. That includes $2.2 billion it owes Russia for natural gas purchases.

The IMF announced a $17 billion loan package for Ukraine over the next two years, and the World Bank, the European Union, Japan , Canada and the United States have pledged another $15 billion. The loans come with a requirement that Kyiv undertake economic reforms, including tax hikes, wage freezes and cuts in social aid.

But Moghadam acknowledged that the $17 billion IMF loan is not as big as it appears. He said $5 billion of the figure is meant for Ukraine to pay back money it already owes the IMF from a previous loan.

With Ukraine's weak economy, its struggle to maintain control of mostly Russian-speaking eastern Ukraine and Russian troops massing just across the border, Moghadam had a blunt assessment of the current state of Ukrainian affairs.

"The degree of uncertainty is very large," said Moghadam.

One expert on former Soviet republics like Ukraine, University of New Hampshire political scientist Lionel Ingram, says in a VOA interview that the IMF was right to be wary of sending more money to Ukraine.

"If I were the IMF, I'd be very, very careful about providing money to Ukraine. On the other hand, if I were the IMF, I'd understand the dire necessity of at least trying to help," said Ingram.

U.S. Vice President Joe Biden, who recently visited Ukraine, condemned Russian intervention there in a Washington speech this week. But he also leveled criticism at Ukraine, saying corruption is one reason Kyiv is struggling.

"The corruption is incredibly corrosive. It may not be politic to say, but it is a reality," said Biden.

The IMF's Ukraine mission chief, Nikolay Gueorguiev, says the agency sees improvement in Ukraine's effort to combat corruption.

"We already see major progress in this area, admittedly from a low starting point," said Gueorguiev.

He said Ukraine has undertaken some reforms , including preventing illegal domestic production of alcohol.

You May Like

This US Epidemic Keeps Getting Worse

One in 4 Americans suffers from this condition More

How to Safeguard Your Mobile Privacy

As the digital world becomes more mobile, so too do concerns about eroding privacy and increased hacking More

'Desert Dancer' Chronicles Iranian Underground Dance Troupe

Film by Richard Raymond is based on true story of Afshin Ghaffarian and his friends More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Scientists Say Plankton More Important Than Previously Thoughti
X
George Putic
May 26, 2015 9:26 PM
Tiny ocean creatures called plankton are mostly thought of as food for whales and other large marine animals, but a four-year global study discovered, among other things, that plankton are a major source of oxygen on our planet. VOA’s George Putic reports.
Video

Video Scientists Say Plankton More Important Than Previously Thought

Tiny ocean creatures called plankton are mostly thought of as food for whales and other large marine animals, but a four-year global study discovered, among other things, that plankton are a major source of oxygen on our planet. VOA’s George Putic reports.
Video

Video Kenyans Lament Losing Sons to al-Shabab

There is agony, fear and lost hope in the Kenyan town of Isiolo, a key target of a new al-Shabab recruitment drive. VOA's Mohammed Yusuf visits Isiolo to speak with families and at least one man who says he was a recruiter.
Video

Video US-led Coalition Gives Some Weapons to Iraqi Troops

In a video released Tuesday from the Iraqi Ministry of Defense, Iraqi forces and U.S.-led coalition troops survey a cache of weapons supplied to help Iraq liberate Mosul from Islamic State group. According to a statement provided with the video, the ministry and the U.S.-led coaltion troops have started ''supplying the 16th army division with medium and light weapons in preparation to liberate Mosul and nearby areas from Da'esh (Arabic acronym for Islamic State group).''
Video

Video Amnesty International: 'Overwhelming Evidence' of War Crimes in Ukraine

Human rights group Amnesty International says there is overwhelming evidence of ongoing war crimes in Ukraine, despite a tentative cease-fire with pro-Russian rebels. Researchers interviewed more than 30 prisoners from both sides of the conflict and all but one said they were tortured. Henry Ridgwell reports for VOA from London.
Video

Video Washington Parade Honors Those Killed Serving in US Military

Every year, on the last Monday in the month of May, millions of Americans honor the memories of those killed while serving in the armed forces. Memorial Day is a tradition that dates back to the 19th Century. While many people celebrate the federal holiday with a barbecue and a day off from work, for those who’ve served in the military, it’s a special day to remember those who made the ultimate sacrifice. Arash Arabasadi reports for VOA from Washington.
Video

Video Kenya’s Capital Sees Rise in Shisha Parlors

In Kenya, the smoking of shisha, a type of flavored tobacco, is the latest craze. Patrons are flocking to shisha parlors to smoke and socialize. But the practice can be addictive and harmful, though many dabblers may not realize the dangers, according to a new review. Lenny Ruvaga has more on the story for VOA from Nairobi, Kenya.
Video

Video Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam War

For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Female American Soldiers: Healing Through Filmmaking

According to the United States Defense Department, there are more than 200-thousand women serving in the U.S. Armed Forces.  Like their male counterparts, females have experiences that can be very traumatic.  VOA's Bernard Shusman tells us about a program that is helping some American women in the military heal through filmmaking.
Video

Video Iowa Family's Sacrifice Shaped US Military Service for Generations

Few places in America have experienced war like Waterloo. This small town in the Midwest state of Iowa became famous during World War II not for what it accomplished, but what it lost. As VOA’s Kane Farabaugh reports, the legacy of one family’s sacrifice is still a reminder today of the real cost of war for all families on the homefront.
Video

Video On Film: How Dance Defies Iran's Political Oppression

'Desert Dancer' by filmmaker Richard Raymond is based on the true story of a group of young Iranians, who form an underground dance troupe in the Islamic Republic of Iran. This is the latest in a genre of films that focus on dance as a form of freedom of expression against political oppression and social injustice. VOA’s Penelope Poulou has more.
Video

Video Turkey's Ruling Party Trying to Lure Voters in Opposition Stronghold

Turkey’s AK (Justice and Development) Party is seeking a fourth successive general election victory, with the goal of securing two-thirds of the seats in Parliament to rewrite the constitution and change the country's parliamentary system into a presidential one. To achieve that, the party will need to win seats in opposition strongholds like the western city of Izmir. Dorian Jones reports.
Video

Video Millions Flock to Ethiopia Polls

Millions of Ethiopians cast their votes Sunday in the first national election since the 2012 death of longtime leader Meles Zenawi. Mr. Meles' party, the Ethiopian People's Revolutionary Democratic Front, is almost certain of victory again. VOA's Anita Powell reports from Addis Ababa.

VOA Blogs