IMF sees risk in further bankrolling Kiev

 Ukrainian President Petro Poroshenko. © Valentyn Ogirenko
The International Monetary Fund considers further funding of Ukraine through the Extended Fund Facility program risky, according to its representative Jerome Vacher. If Kiev fails to live up to its agreement with IMF, financial aid to Ukraine could end.

"We are entering a difficult time. There is a need for responsible policies to keep moving on the chosen path. We see certain risks for the IMF program,” Vacher told the Ukrainian Ukrinform news agency on Thursday.

According to the IMF representative, Ukraine’s fiscal policy should conform to the agreement reached between Kiev and the Fund.

"There are risks that Ukraine could adopt a budget that does not meet the objectives of the IMF program, which will indicate the policy that we do not support," said Vacher.

“Now we will wait for the proposed budget, whether it will meet the agreements. And if we could back it,” he added.

If Ukraine fails to meet the IMF expectations and fails to agree with the Fund, all credit programs from international financial organizations will be halted. This includes World Bank, European Bank for Reconstruction and Development, the governments of the EU and the United States.

The Ukrainian government is reviewing the draft budget on Friday so that parliament could approve it next week. According to Ukrainian economist Aleksandr Okhrimenko, Kiev will have to change the budget before the IMF signs off. The same thing happened last year.