The International Monetary Fund vowed on Tuesday to stand by Ukraine despite the growing likelihood that a worsening pro-Russian uprising would cripple the economy so badly that its current $17.1 billion (13.0-billion-euro) rescue will prove too small.
The global lender said it was releasing the second $1.39 billion tranche of its lifeline despite “major uncertainties” and on the assumption that the ex-Soviet country’s Western allies would be ready to pitch in with extra assistance if asked.
“We are assuming that the conflict will begin to subside in the coming months,” the Fund’s European Department head Paul Thomsen said in his first review of Kiev’s compliance with its reform and recovery programme.
“But the balance of risks appear to be tilted to the downside. If this assumption does not hold… the programmes’ viability could hinge on larger assistance from Ukraine’s international partners.”
The IMF said its worst-case scenario would see Ukraine requiring an additional $19 billion in funding by the end of 2015.
