US vice president urges governing coalition to get with the program

WASHINGTON, Feb. 11 - U.S. Vice President Joe Biden and Ukrainian President Petro Poroshenko discussed the need for governance reforms in Ukraine during a phone call on Thursday, the White House said, Reuters reported.

The call came a day after Poroshenko told the International Monetary Fund he was committed to the reforms to keep Kiev's $17.5 billion IMF bailout on track.

"The vice president urged the governing coalition to quickly establish unity to allow Ukraine to move forward with reforms, in line with the commitments in its IMF program," the White House said in a statement.

The two leaders also expressed "serious concern about the worsening security situation in eastern Ukraine," the White House said.

The IMF threatened to cut crucial financial aid to cash-strapped Ukraine Wednesday because of the country's "slow progress" in fighting corruption.

Christine Lagarde, the IMF managing director, said in a strongly worded statement that "Without a substantial new effort to invigorate governance reforms and fight corruption, it is hard to see how the IMF-supported program can continue and be successful."

Lagarde's comments followed the shock resignation one week ago of Ukraine's reformist economy minister, Aivaras Abromavicius, in protest against alleged influence-peddling and state graft.

Lagarde last week said the reasons for his resignation were troubling, and she went much further Wednesday.

"I am concerned about Ukraine's slow progress in improving governance and fighting corruption, and reducing the influence of vested interests in policymaking," she said.

"It is vital that Ukraine's leadership acts now to put the country back on a promising path of reform."

If the IMF makes good on its threat, it would freeze all future lending under the $17.5 billion four-year aid program agreed in March 2015 on the condition that cash-strapped Ukraine delivers drastic reforms. The Fund has disbursed $6.7 billion to date.

The IMF program is the keystone of a roughly $40 billion international bailout of Ukraine that could collapse, with almost-certain disastrous consequences for a country reeling from a severe recession and a pro-Russian insurgency in the east. (rt/ez)