The International Monetary Fund admits Ukraine’s bailout can be halted for numerous reasons with corruption being the most important one. The new Ukrainian government did not succeed at fighting corruption because the officials continue pocketing the funds, including those received from overseas.
“I am concerned about Ukraine’s slow progress in improving governance and fighting corruption,” IMF managing director Christine Lagarde said adding that “it is hard to see how the IMF-supported program can continue and be successful" under the current circumstances. By the way, the funds allotted to support Ukraine’s economy are substantial, and it just happens that officials would rather get a piece of the pie than start living by European standards.
Many countries were closely watching the first Ukraine’s attempts to implement economic reforms which were expected to bring about considerable changes. Today, however, Ukraine risks a return to the pattern of failed economic policies, Christine Lagarde said. The new government enjoyed high creditworthiness, strong support from the population and international partners. Moreover, international financial aid was at hand. Nevertheless, even backed by these factors, the authorities did not implement any essential reforms. Meanwhile, those who tried to introduce them failed to overcome the system. For example, Ukrainian Minister of Economy and Trade Aivaras Abromavicius has resigned recently. He explained his decision by saying that his attempts to introduce reforms were blocked. The official complained it was difficult to introduce reforms because of political pressure and existing corruption schemes.
