IMF package for Ukraine "not enough", minister says

Tue Jul 8, 2014 10:33am EDT
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* Ukraine appeals to donors to back "Marshall plan"

* Kiev plans rehabilitation programme for the east

* EU official says more funds depend on reforms

By Adrian Croft

BRUSSELS, July 8 (Reuters) - Ukraine's deputy prime minister told international donors on Tuesday that a $17 billion International Monetary Fund bailout was "not enough" because of "unprecedented Russian-inspired aggression".

Vice Prime Minister Volodymyr Groysman urged international donors at a meeting in Brussels to support a "Marshall Plan" for economic recovery that the government will present at a donors' conference expected to be held in the autumn.

The IMF approved a $17 billion two-year aid programme for Ukraine in April to help the former Soviet republic's economy recover after months of upheaval, unlocking further credits from other donors of about $15 billion. Ukraine's economy has stagnated for the past two years and the government has said it is likely to shrink by 3-5 percent this year.

"Today Ukraine is confronted with new challenges that cannot be solved in a standard fashion," Groysman told the meeting, through an interpreter.

"The International Monetary Fund package has helped recovery, but today this is not enough, in that we have unprecedented aggression on behalf of the Russian Federation."   Continued...