KIEV, Sept 26 (Reuters) - Ukraine needs to press on with reform, as loans alone will not help the economy out of the financial crisis, the International Monetary Fund's Managing Director Dominique Strauss-Kahn said on Saturday.
Ukraine, its economy deeply affected by the global financial crisis, is surviving on a $16.4 billion lifeline from the IMF.
'Loans can be useful to solve problems immediately, but the root of the problems lies within the country,' Strauss-Kahn told a forum in the Ukrainian resort town of Yalta via a video link. His comments were dubbed into Russian.
'No matter how many loans you get you may not solve these problems. Instead you may increase the indebtedness of the country, and thus end up in a worse situation than you started.'
To secure the IMF's help, Ukraine promised to take measures to balance its budget, revitalising state energy firm Naftogas and the banking sector. However many pledges remain unfulfilled.
'The IMF works as a doctor not a policeman,' Strauss-Kahn said. 'The big part of the efforts must be made in the countries themselves. Ukraine is already doing a lot.. but there are still problems.'
(Reporting by Natalia Zinets; Writing by Toni Vorobyova) Keywords: UKRAINE IMF/ (antonina.vorobyova@reuters.com; Tel: +7495 7751242, Reuters Messaging: antonina.vorobyova.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Ukraine, its economy deeply affected by the global financial crisis, is surviving on a $16.4 billion lifeline from the IMF.
'Loans can be useful to solve problems immediately, but the root of the problems lies within the country,' Strauss-Kahn told a forum in the Ukrainian resort town of Yalta via a video link. His comments were dubbed into Russian.
'No matter how many loans you get you may not solve these problems. Instead you may increase the indebtedness of the country, and thus end up in a worse situation than you started.'
To secure the IMF's help, Ukraine promised to take measures to balance its budget, revitalising state energy firm Naftogas and the banking sector. However many pledges remain unfulfilled.
'The IMF works as a doctor not a policeman,' Strauss-Kahn said. 'The big part of the efforts must be made in the countries themselves. Ukraine is already doing a lot.. but there are still problems.'
(Reporting by Natalia Zinets; Writing by Toni Vorobyova) Keywords: UKRAINE IMF/ (antonina.vorobyova@reuters.com; Tel: +7495 7751242, Reuters Messaging: antonina.vorobyova.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.