IMF further delays Ukraine bailout

IMF Managing Director Christine Lagarde said that without substantial anti corruption and reform efforts from officials in Kiev, a resumption of funding could be difficult

The International Monetary Fund on Thursday said it had not yet decided to resume a bailout of war-torn Ukraine, which the crisis lender halted over corruption concerns last year.

A spokesman for the Fund had earlier this month held out the possibility of a resumption by the end of July.

Since last August, Ukraine has received no new IMF disbursements from a USD 17.5 billion bailout package approved in April last year.

"We expect that Ukraine would be taken up by the executive board sometime when the board reconvenes. Possibly in August or September," IMF spokesman William Murray told a news conference.

Any resumption of funding would have to be approved by the board, which represents 189 member countries.

Ukraine is currently awaiting the next USD 1.6 billion tranche from the bailout, intended to help stabilise the country following the 2014 ouster of the pro-Moscow President Viktor Yanukovych. So far USD 6.6 billion have been disbursed.

After two years of war, the country has suffered deep economic contractions, with GDP dropping 9.9 per cent last year after falling 6.6 per cent in 2014.

IMF Managing Director Christine Lagarde said in February that, without substantial anti corruption and reform efforts from officials in Kiev, a resumption of funding could be difficult.

Reforms prescribed by the IMF have been tough and unpopular in Ukraine but local lawmakers have approved measures proposed by the Fund.