Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), made the following statement today in Kyiv, Ukraine:
“I am very pleased to be in Kyiv for the first time and to have the opportunity to discuss with President Petro Poroshenko, Prime Minister Arseniy Yatsenyuk, Finance Minister Natalie Jaresko, Governor Valeria Gontareva and their colleagues the implementation of their economic reform program.
“I am extremely encouraged by the progress that has been achieved in the past few months. In a difficult environment, macroeconomic stabilization is taking hold and the economy shows signs of turning the corner. This achievement is a tribute to the courageous work of the Ukrainian authorities.
“Policies are on the right track and have started to yield results. The fiscal position is getting stronger, the foreign exchange market has stabilized, and the banking sector is being repaired so that banks are sounder and can start to provide credit again. The recent debt restructuring agreement is a vital complement to economic reforms, and an essential step toward creating fiscal space, external sustainability, and improved confidence.
“Significant reforms have been launched to bring energy prices to cost recovery levels, with due protection of vulnerable citizens. There has also been progress towards strengthening the social safety net and restoring the social contract in Ukraine. In addition, an independent and capable anti-corruption agency with broad powers has been launched and judicial reform has been initiated. It is crucial that efforts in this area continue.
“Significant challenges remain. It is essential to stay the course of reform and, indeed, deepen the effort. As Ukraine moves forward, it has the full support of the IMF.”