MOSCOW, September 3 (RIA Novosti) - Brazil’s representative at the International Monetary Fund (IMF) Paulo Nogueira Batista said the success of the $17 billion loan program to Kiev depended on the cooperation between Russia and Ukraine, according to Agence France-Presse (AFP).
“The success of this program heavily depends on a political solution for the fighting in the East of Ukraine, which will require cooperation – rather than confrontation – between Kiev and Moscow,” Batista was quoted as saying by AFP.
He called the program “flawed, or questionable at least” and warned against making the same mistake as with Greece when there were delays with debt restructuring.
On August 29, the Executive Board of the IMF enabled the disbursement of about $1.39 billion to Ukraine. The organization approved its two-year $17 billion stand-by arrangement on April 30.
The arrangement aims to support the government’s economic program, targeted at restoring macroeconomic stability, strengthening economic governance and transparency, and launching sustainable economic growth while protecting the vulnerable groups.
Ukraine’s economy is suffering as a result of the crisis in the country, with the government forces fighting against independence supporters in eastern Ukraine. Kiev also has a significant gas debt that is estimated to be in excess of $5 billion dollars.
