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IMF 'very worried' about Ukraine wage law decision

Published 10/30/2009, 10:01 AM
Updated 10/30/2009, 10:03 AM

ROME, Oct 30 (Reuters) - The IMF's managing director said he was 'very worried' by the Ukraine president's decision on Friday to approve a wages bill the fund had asked him to veto, saying the move left the nation's loan deal 'off track'.

The International Monetary Fund had said the bill should be shelved before it could decide on releasing the next $3.8 billion bailout tranche from the deal it signed with Ukraine last year.

IMF head Dominique Strauss-Kahn, in Italy to attend a labour conference, told Reuters: "I'm very worried by the President's agreement to this bill which puts the programme we had signed off track and in this situation I'm afraid it would be very difficult to complete the next review of the programme."

"That's why we are going to continue working with the Ukrainian authorities in the hope they can come together again to reach a position which would comply with the technical agreement we signed with the government," he said in a telephone interview.

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