Ukrainian Canadian professionals intervene in support of Ukraine's position with IMF (08/20/00)

Ukrainian Canadian professionals intervene in support of Ukraine's position with IMF

OTTAWA - The Ukrainian Canadian Professional and Business Federation has played an interventionist role in positioning Canada on Ukraine's side in discussions of the International Monetary Fund (IMF).

"The Ukrainian Canadian Professional and Business Federation has intervened twice to solicit Canada's support in this effort," said its president, Oksana Bashuk Hepburn. The IMF had suspended credits to Ukraine last September due to the slow pace of reform in the country.

On the eve of Foreign Affairs Minister Boris Tarasyuk's visit to Canada in May, the UCPBF wrote to Prime Minister Lloyd Axworthy seeking Canada's support in this critical matter.

The letter noted: "We have been quite concerned about the economic situation in Ukraine and the lack of progress on the long-awaited reforms. However, we are very optimistic that the government is now making serious progress under the leadership of Prime Minister [Viktor] Yuschenko. It is our view that this renewed effort must be encouraged and rewarded.

"To this end we seek your support, and the support of the Canadian government, to ensure that the IMF loan will be extended to Ukraine at this time. It is our view that failure to do so at this critical point in time could pave the way for increased pressures on Ukraine to gravitate back into a Russian sphere of influence."

Following his meetings with Canadian colleagues in Ottawa in July, Ukraine's Vice Prime Minister for Humanitarian Affairs Mykola Zhulynskyi reported that Canada had promised to support Ukraine in its discussions with the IMF.

"This makes our efforts worthwhile. It is important to voice our views in these matters," commented Ms. Hepburn.

Ukraine is very keen on renewing its relations with the IMF. If successful, it can seek further financial support from the Paris Club, a group of leading countries mandated to assist governments in restructuring their debts. Ukraine's debt is some $500 million.

"We raised the idea of Canada's support of Ukraine in the Paris Club last spring in a document to the government via the Ukrainian Canadian Congress [and] also with Ambassador [Yuri] Shcherbak," said Ms. Bashuk Hepburn.

The UCPBF's position stated "Canada is much loved in Ukraine and more of its good counsel and intervention would be welcomed. Canada can seize the moment and show global leadership in its dealing's with Ukraine by putting forward new approaches that will yield results," she said.

According to the UCPBF president, these might include "supporting a better loan repayment deal for Ukraine with the international lending institutions via the Paris Club ... as part of the settlement of its international debt."

Canada's policy towards Ukraine will be one of the topics discussed at the Canadian Issues Roundtable being organized by the UCPBF on September 16-17 on Parliament Hill in Ottawa. For information on how to participate in the event contact Peter Sorokan: telephone, (613) 523-7818; e-mail, [email protected]

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