Ukraine could lose a $17.5 billion bailout from the International Monetary Fund unless it speeds up political reforms and curbs corruption, the head of the IMF said on Wednesday, Reuters reported. Christine Lagarde's warning followed the shock resignation last week of the economy minister, Aivaras Abromavicius, which highlighted divisions inside the ruling coalition and its patchy performance on reforms promised under the IMF programme. "Without a substantial new effort to invigorate governance reforms and fight corruption, it is hard to see how the IMF-supported programme can continue and be successful," Lagarde said in an online statement. In an apparent reference to Abromavicius's complaint that vested interests still dominated Ukrainian policymaking, Lagarde said she was concerned about slow progress on corruption. "Ukraine risks a return to the pattern of failed economic policies that has plagued its recent history. It is vital that Ukraine's leadership acts now to put the country back on a promising path of reform," she said. Ukraine's President Petro Poroshenko later said he had spoken with Lagarde by telephone and that they had agreed to draw up a roadmap to deal with the most critical reforms.
