IMF says commitment to reform is key in Ukraine aid program

The International Monetary Fund (IMF) said on Thursday that its fact-finding team will complete its work in Ukraine as early as Friday and evaluation on its commitment and capacity to reforms is key in considering the financial aid program.

"The next steps would be for that fact-finding team to make their presentation, their assessment to brief IMF management," IMF spokesman Gerry Rice told reporters in a news briefing.

While saying discussions in Kyiv have made "good progress," Rice noted "everything is contingent on the assessment of the mission."

The 188-member global lender previously offered a multi-year loan program of 15 billion U.S. dollars to Ukraine in 2010, but ceased providing funding at the end of 2011 as the country did not live up to the reforms measures it had committed.

After meeting with Prime Minister of Ukraine Arseniy Yatsenyuk, IMF Managing Director Christine Lagarde said Wednesday the IMF mission to Ukraine made good progress and the Fund is keen to help the country to restore economic stability.

Rice said there are indications of commitment to reform and the fact-finding team will be reporting on this before the management makes a decision.

The spokesman also underscored the importance of implementing the much-delayd IMF 2010 quota and governance reforms. "Under the reform, the Ukraine quota would increase, so that potentially its access to IMF resources would also increase," Rice said.

"More broadly why the quota reform is important is that it puts the Fund's resources and capital base on a much more secure footing. And that's important for the entire membership and for any potential crisis situation that may occur," he added.