[Congressional Record Volume 140, Number 145 (Friday, October 7, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 7, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
        UKRAINE'S AGREEMENT WITH THE INTERNATIONAL MONETARY FUND

  Mr. LEAHY. Mr. President, in the midst of the hustle and bustle in 
this body over the past week, I believe the Senate has failed to take 
appropriate notice of a very important development. On September 30, 
the International Monetary Fund announced that it had reached 
preliminary agreement with the Ukrainian Government on a cooperation 
arrangement. The IMF has entered this arrangement on the understanding 
that the Ukranian Government is moving forward with a program of 
economic reform designed to reduce the inflation that has been 
devastating the Ukrainian people, stabilize the Ukrainian economy, and 
stimulate private investment to begin to expand production and create 
jobs. As part of the arrangement, the IMF will provide a large loan to 
bolster the foreign exchange position of the Ukrainian Government and 
provide it the breathing space it needs to sustain reform.
  This is exciting news. I and many other Senators have long 
entertained the hope that the Ukraine, a country with which we share 
many close and warm ties, would jump on the bandwagon of reform and 
proceed with the transition to democracy and a private enterprise-
oriented market economy. This latest announcement, together with the 
news we are receiving from Kyiv, confirms that these hopes are being 
fulfilled. When I visited Kyiv a month ago, President Kuchma, who just 
entered office 3 months ago, told me that he intended to set his 
Government on a courageous new path. Rada Speaker Moroz, with whom I 
met here this week, has also pledged to support private investment.
  Mr. President, I have said repeatedly that the United States should 
stand ready to support the Ukraine generously when it embarked on the 
reform path. There is no question that the Ukraine requires assistance. 
Its balance of payments is in crisis. Investment is badly depressed. 
The Ukrainian people do not understand well what has happened to them 
or where to turn for help. The IMF assistance, while significant, will 
only being to close the financial gaps that President Kuchma faces.
  The time has come for us to act. Some may argue that we should 
continue to hold back, make sure that the Ukrainians will actually 
implement the reforms that we believe essential. But what the 
Ukrainians need now is a vote of confidence, so that they can begin to 
have confidence in themselves. Let us be bold. Let us take President 
Kuchma at his word. I call on the administration to reopen its book on 
aid for the Ukraine. The United States should be front and center when 
it comes to welcoming the Ukraine to the ranks of democratic market 
economies.

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