IMF warns Ukraine against populism in elections

This is stated in the IMF's analytical report on the new Stand-By Arrangement (SBA) for Ukraine and the cancellation of arrangement under the Extended Fund Facility (EFF), the text of which was obtained by Ukrinform.

"Risks to the new program are high, notably due to the unresolved conflict in the eastern part of Ukraine and the unsettled external environment, as well as pressures for populist policies or policy reversals [within Ukraine] ahead of the upcoming elections," the IMF said.

At the same time, according to the report, these risks are mitigated by strong frontloaded actions, including approval of the 2019 budget, and significant external financing to support reforms. This includes new financing from the World Bank and the European Union.

"Nonetheless, the authorities' steadfast policy implementation will be critical for the program to succeed," the IMF said.

On December 18, the IMF Executive Board approved a new 14-month Stand-By Arrangement (SBA) for Ukraine in the amount of about $3.9 billion.