The warning follows the last week resignation of economy minister, Aivaras Abromavicius, which highlighted deep divisions within the ruling coalition and the patchy performance of Ukraine’s reform drive under the $17.5 billion IMF program, Joinfo.ua reports with reference to Reuters.
In a statement, Lagarde said she was concerned about Ukraine’s slow progress in tackling graft and reducing the influence of vested interests in policymaking.
“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,” she said.
“Ukraine risks a return to the pattern of failed economic policies that has plagued its recent history. It is vital that Ukraine’s leadership acts now to put the country back on a promising path of reform.”
It should be recalled that Aivaras Abromavicius announced about his decision to resign from the post of the Minister of Economic Development and Trade of Ukraine last week.
“His decision to resign is a cause for concern. If the suspicions, which he express, are accurate, this is a clear sign that the commitments to fight corruption are not fulfilled by the government”, – Christine Lagarde said, commenting his decision.
Ukraine has been waiting since October for the IMF to dispense a third tranche of loans, worth $1.7 billion, but slow or delayed reforms and political squabbles have delayed its disbursement.