The International Monetary Fund has Put off a Bailout for Ukraine

The IMF told President Volodymyr Zelensky he must aggressively pursue the missing money to deliver on his vow to clean up a financial system sapped by fraud, money laundering and theft. The International Monetary Fund has put off a bailout for Ukraine because it is worried the country’s president won’t recoup billions of dollars allegedly looted from banks, The Wall Street Journal reports. It is noted that the IMF told President Volodymyr Zelensky he must aggressively pursue the missing money to deliver on his vow to clean up a financial system sapped by fraud, money laundering and theft. Among Kyiv’s challenges in winning IMF approval is Ihor Kolomoisky, a tycoon and supporter of Mr. Zelensky who is under investigation in the U.S. Mr. Kolomoisky and another businessman each held 45% stakes in Ukraine’s largest financial institution, PrivatBank, until it was nationalized, WSJ reports. The IMF is holding up the next set of loans until it is convinced Mr. Zelensky’s government will aggressively try to recoup an estimated $15 billion stolen from more than 100 banks, including PrivatBank, over the past decade. Mr. Kolomoisky, one of Ukraine’s richest men, was vocal in his support for Mr. Zelenskyduring his presidential campaign. Mr. Kolomoisky returned to Ukraine from self-imposed exile in May after Mr. Zelensky won the presidency, and since then has met with the president publicly. Their relationship has been closely watched by the IMF, according to people familiar with the fund’s negotiations with Ukraine, WSJ reports. In turn, representatives of the National Bank of Ukraine told The Wall Street Journal that they were determined to mitigate the IMF’s anxiety and return the withdrawn funds. The IMF, however, remains skeptical after a history of broken promises. Kyiv hasn’t successfully completed any of a series of IMF bailout packages over the past two decades, with systemic corruption at the heart of much of that failure, according to IMF records and officials. We remind that the National Bank of Ukraine expects a new deal with the IMF before the end of the year. Korrespondent