IMF Withholds Aid As Ukrainian Rail Blockade Continues

March 19, 2017, Written by

International Body Assesses Impact On Economy

As the blockade in East Ukraine shuts down rail lines from Donetsk into the government-controlled regions of the country for another week, gravely impacting the nation’s economic growth, the International Monetary Fund and the government in Kyiv announced today that the IMF is delaying further disbursement of aid until they can obtain clarity on how the Ukrainian economy will be impacted.

“Updated macroeconomic forecasts are to be provided to the IMF,” the central bank released in a statement, reported Reuters.

“Dialogue and technical consultations with the IMF are continuing…” The central bank previously said that economic growth in the country could be reduced by half.

For its part the IMF said its board meeting was delayed “to allow staff time to assess the implications of recent developments for the program. Staff expect to announce a new date soon.”

Finance Minister Oleksandr Danylyuk said new consultations with the IMF would be completed “as soon as possible.”