IMF warns Ukraine on budget deficit

Max Alier, the International Monetary Fund’s local representative in Ukraine, said yesterday that the IMF could break off cooperation with Ukraine if the government moves to increase the budget deficit, Interfax reported, citing newspaper Kontrakti. Alier said that such moves would contradict the spirit of the IMF’s USD 16.5 bln loan facility to the country and could deepen the economic crisis in Ukraine. Mykyta Mykhaylychenko: We believe the government will not risk tarnishing relations with the IMF and do its best to keep the budget deficit within the norms it negotiated with the IMF.