Fitch doesn't rule out delays in future disbursements for Ukraine19.09.2016 14:27 223
The International Rating Agency Fitch has expressed concerns about Ukraine's ability to carry out reforms, even following the approval of another tranche from the International Monetary Fund (IMF).
“The IMF executive board's approval of a disbursement of USD1.0 bn to Ukraine is positive but does not dispel concerns about Ukraine's ability to deliver on reforms agreed with the Fund,” Fitch said in a statement.
According to Fitch, political uncertainty and a challenging reform agenda mean delays to future disbursements under Ukraine's IMF programme cannot be ruled out, highlighting Ukraine's persistent external vulnerabilities.
At the same time, the agency notes that the disbursement of the IMF tranche would strengthen a weak reserves position and should also unlock US loan guarantees and EU funds, according to the statement.