Reform promises win a new IMF program
Overview:
When Viktor Yanukovych won presidential elections earlier this year financial markets reacted positively. Apart from reduced political uncertainty this reflected a hope that the new administration would win the restart of IMF disbursements. A number of months have passed, but the new government appears finally to be on course to achieve this goal. It has won provisional agreement for a new Fund program and seems to be implementing the necessary measures to have this confirmed. The economy is recovering from a very deep recession. This is just as well. The structural reform measures needed to stay on track with the Fund and improve Ukraine’s long-term economic performance will be painful. Yanukovych is seeking to consolidate his political power and is succeeding in doing so.