November 11, 2015 / 1:38 PM / 4 years ago

IMF mission sets date for Ukraine reform review

The International Monetary Fund (IMF) logo is seen at the IMF headquarters building during the 2013 Spring Meeting of the International Monetary Fund and World Bank in Washington, April 18, 2013. REUTERS/Yuri Gripas

KIEV (Reuters) - An International Monetary Fund mission will arrive in Kiev on Thursday to assess progress made under its $17.5 billion bailout program, the Fund’s Ukraine representative Jerome Vacher said in a statement on Wednesday.

Under the program, Ukraine has already received almost $10 billion this year to shore up its finances crippled by separatist conflict and years of economic mismanagement and corruption.

However the disbursement of the next $1.7 billion tranche has been delayed as the IMF said the government and parliament, which are in disagreement over proposed tax reforms, needed more time to sort out fiscal polices for 2016.

“The mission will continue policy discussions with the Ukrainian authorities in the context of the second review of the Fund-supported economic reform program,” Vacher said.

A key requirement under the IMF program is cutting the 2016 budget deficit to 3.7 percent of gross domestic product from the current level of 4.1 percent.

Last week Prime Minister Arseny Yatseniuk said Ukraine risked losing the support of its Western backers if the squabble over the size of tax cuts delays or derails promised reforms.

Apart from the IMF loans, Ukraine also hopes to receive a further $2.7 billion this year from other lenders, including a third $1-billion loan guarantee from the United States.

U.S. Treasury Secretary Jack Lew will visit Kiev on Friday and assess Ukraine’s progress in its reform drive, Yatseniuk said in a government meeting on Wednesday.

Reporting by Natalia Zinets; Writing by Alessandra Prentice; Editing by Richard Balmforth

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