Ukraine bailout faces huge risks: IMF

An woman sits on a bench painted in the coulours of the Ukrainain flag in the eastern city of Slavyansk, Donetsk, controlled by Ukrainian forces, on March 12, 2015The $40 billion bailout for Ukraine faces an array of “exceptionally high” risks, the IMF warned Thursday, a day after pledging to pump $17.5 billion into the four-year rescue. The breakdown of a frail ceasefire with rebels in the country’s east, the failure to reschedule its debt with private lenders, or domestic political issues could all undermine the plan even as it starts, the IMF warned. “The program faces exceptionally high risks,” the IMF said in an extensive analysis of the contracting Ukraine economy and the prospects of the program. “There are manifold risks that could adversely affect Ukraine’s capacity to repay the Fund, and strict adherence to the program will be critical,” it said.

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