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Ukraine situation posing possible threat to global economy, IMF head says

May 12, 2014, 13:14 UTC+3 BERLIN
Christine Lagarde said already now the geopolitical situation was influencing global trade, flows of capitals and energy security in Europe
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Christine Lagarde

Christine Lagarde

© EPA/MICHAEL REYNOLDS

BERLIN, May 12. /ITAR-TASS/. The situation in Ukraine is unpredictable and may have negative aftermath for the global economy, the managing director of the International Monetary Fund, Christine Lagarde, said in an interview with the German Handelsblatt on Monday.

The crisis in Ukraine posed danger, and it was extremely difficult to establish its level, she said. Besides, one could hardly forecast the likelihood of its spreading over to other states, Lagarde said, adding that the crisis could have grave economic consequences for the global economy.

She said already now the geopolitical situation was influencing global trade, flows of capitals and energy security in Europe. She said the IMF loan of $17 billion was aimed to win back investor trust in Ukraine and to establish financial stability.

She declined to answer the question what part of the loan, to be disbursed to Ukraine within two years, could be transferred from Kiev to Moscow to pay off Ukraine’s gas debt to Russia. “We want Ukraine to pay for the gas it receives from Russia,” the managing director said, expressing hope that Moscow and Kiev will shortly settle the gas problem.

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