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Ukraine team tries again for early IMF funding

Published 12/17/2009, 06:23 AM
Updated 12/17/2009, 06:27 AM

KIEV, Dec 17 (Reuters) - A high-level Ukrainian team headed to Washington on Thursday to make a new plea to the International Monetary Fund to release funding under a stand-by programme by the end of the year.

The ex-Soviet state had expected by now to receive about $3.8 billion in a fourth tranche of IMF credit under a $16.4 billion bail-out plan. It has already drawn $10.5 billion under the programme.

But the IMF is withholding disbursement of the fourth tranche because of differences among Ukraine's political leaders and what it sees as Kiev's failure to abide by its financial and economic obligations.

Deputy Prime Minister Hryhoriy Nemyria "will be on a working visit to Washington on Dec. 17 and 18 to hold talks with IMF heads with the aim of establishing the indicators of the stand-by programme," a statement carried on the government Web site www.kmu.gov.ua said.

Acting Finance Minister Igor Umansky was accompanying Nemyria, the finance ministry said.

IMF director Dominique Strauss-Kahn told Reuters in an interview in November the bail-out programme would resume only after a Jan. 17 election for president.

Earlier this month, the Financial Times said Nemyria, in an earlier trip to Washington, had appealed urgently to the IMF for about $2 billion in emergency loans.

But his office said later new credit was not being sought, but rather early disbursement of part of the allocated fourth tranche.

Nemyria has told IMF officials that without this it would be "extremely difficult" to service Ukraine's foreign debts, settle monthly bills for Russian gas and pay pensions and state employees' salaries. (Writing by Richard Balmforth; editing by Chris Pizzey)

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