9 Jun 2010 21:53

IMF: Ukraine

KYIV. June 9 (Interfax) - The International Monetary Fund has warned Ukraine that its foreign debt is too large and growing too fast.

Paul Thomsen, deputy director of the IMF's European Department, said at a meeting with Ukrainian parliament chairman Volodymyr Lytvyn that Ukraine's current foreign debt, equivalent to 40% of its gross domestic product, might have an adverse effect on the country.

Lytvyn responded that Ukraine's leadership was aware of this problem but argued that any economic moves needed the support of the population. "Realizing that not all solutions will be painless, we must work as openly as possible, otherwise we will be unable to embark on a normal path of development," he said.

"Today there is realization of the need for such joint work with the president and government," Lytvyn said, meaning Ukraine's cooperation with the IMF. "There is need for serious decisions and resolute action, in view of the credit of confidence that the government has today."