IMF hints at quick approval of Ukraine aid

Kiev: The International Monetary Fund on Thursday said it made "significant progress" in talks with Ukraine`s new Western-backed government over the resumption of a vital support programme for the crisis-hit state.

The announcement puts the new Kiev administration one step closer to seeing the release of billions of dollars in assistance promised by the United States and Europe as part of their effort to cement Ukraine`s recent swing away from Russian influence. Any fresh Western assistance hinges on the prior approval of an IMF programme that would oblige Kiev`s untested leaders to follow a range of unpopular measures, such as ending budget-draining energy subsidies to households. IMF mission chief Nikolai Georgiyev said he has seen a welcome commitment to restructure Ukraine`s bureaucracy-laden economy from Prime Minister Arseniy Yatsenyuk. "The mission has made significant progress in discussing with the Ukrainian authorities the policies to put the country on the path of economic reform, sound governance, and sustainable growth while protecting the poor and vulnerable," Georgiyev said in a statement. "Our cooperation with the Ukrainian authorities has been excellent," Georgiyev added. "The authorities` comprehensive reform program covers a wide range of issues and additional work needs to be completed to advance program discussions." The IMF team arrived in Kiev on March 4 for what was supposed to be a 10-day mission aimed at examining the new government`s books following the February 22 fall of the pro-Russian administration of president Viktor Yanukovych. But the Fund decided to extend its stay in what many analysts interpreted as a sign it was moving ahead quickly with the approval of an assistance programme. If approved, it would replace a USD 15-billion (10.9-billion-euro) package whose payments were frozen in 2011 over broken promises by Yanukovych`s team.