Jaresko: urgent aid package needed

KYIV – Ukraine urgently requires a “front-loaded” financial package from the International Monetary Fund to help its economy recover from the challenges posed by a recession and a war with Russian-backed separatists, according to Ukrainian Finance Minister Natalie Jaresko. “If this money is dribbled out over 12 or 15 months it will not have the effect of increasing confidence substantially in our banking system. A front-loading of whatever sum is available… is critical to getting us off to a good start,” Ms. Jaresko said in an Atlantic Council phone briefing on February 3. She did not specify a dollar amount needed by Ukraine, but said the aid package should be substantial enough for the government in Kyiv to rebuild confidence in the domestic economy and banking system. Ms. Jaresko said timing of the aid is important because Ukraine is in a “critical situation.” An existing IMF package is worth $17 billion. So far $4.6 billion has been paid out in two installments. International Monetary Fund officials have been trying to secure additional assistance for Ukraine, but many foreign donors are unsure of Kyiv’s commitment to reforms, especially rooting out corruption. Ms. Jaresko said her government has taken several steps to address these concerns. These include the elimination of intermediaries in state gas deals; the establishment of an anti-corruption bureau, an anti-corruption agency and a new electronic value-added tax (VAT) system; and the appointment of a business ombudsman as part of an effort to tackle corruption. “Our anti-corruption efforts are critical to the legitimacy of the state, they are critical to the legitimacy of our reform effort, and they are critical to making those structural changes in the economy,” said Ms. Jaresko. (Ashish Kumar Sen/Atlantic Council)