An IMF program to prop up cash-strapped Ukraine`s stricken economy cannot continue without reform by the authorities in Kiev, International Monetary Fund chief Christine Lagarde warned Wednesday.


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"Without a substantial new effort to invigorate governance reforms and fight corruption, it is hard to see how the IMF-supported program can continue and be successful," Lagarde, the Washington-based lender`s managing director, said in a strongly worded statement.


The IMF is the main source of rescue financing for Ukraine as the hard-up country battles with crises ranging from falling commodity prices to a new trade embargo by Russia.


The Fund has a $17.5 billion rescue program for Ukraine on condition the government enacts economic reforms and fights corruption.


"I am concerned about Ukraine`s slow progress in improving governance and fighting corruption, and reducing the influence of vested interests in policymaking," said Lagarde.


"Ukraine risks a return to the pattern of failed economic policies that has plagued its recent history," she added.


"It is vital that Ukraine`s leadership acts now to put the country back on a promising path of reform."


It is the second time in a matter of days that Lagarde has voiced concern about the portents for the bailout program.


Last week she said that the abrupt resignation of Ukraine`s reformist economy minister, Aivaras Abromavicius, who cited government corruption, was a troubling sign.


Abromavicius quit in protest at alleged influence-peddling and state graft.


Western frustration has been fanned by the fact that Abromavicius was the fourth reform-minded minister to tender his resignation since Ukraine`s 2014 revolution broke its ties with Russia and set it on a European course.


The resignation sparked alarm among Ukraine`s Western allies and prompted President Petro Poroshenko to hold a meeting with ambassadors from the G7 countries in a bid to allay their concerns.