Ukraine still has work to do on reforms, U.S. VP Biden says
KIEV (Reuters) - U.S Vice President Joe Biden said on Monday Ukraine still had a lot of hard work to do on reforms, as he announced new financial aid of $190 million to help the country fight corruption and streamline its bureaucracy. Ukraine's Western backers have repeatedly urged Kiev authorities to stick to reform promises made under a $40 billion international bailout programme aimed at shoring up the country's war-torn economy, which was brought close to bankruptcy by years of corruption and economic mismanagement. "It is absolutely critical for Ukraine to root out the cancer of corruption ... Ukraine is on the cusp -- what happens in the next year is likely to determine the fate of the country for generations," Biden told a joint briefing with President Petro Poroshenko following bilateral talks. Disagreement between the government and parliament over critical tax amendments and slow progress in revamping Ukraine's corrupt judicial system have raised concern that the country's leadership will stumble in its reform drive. "A lot of hard work remains, including reform of Ukraine's law and justice sectors, but the payoff will be worth it," Biden said, even as he welcomed "real signs" of economic improvement. Including the latest funds, the U.S. government has given Kiev $760 million in direct economic assistance and signed two loan guarantees, each worth $1 billion, since pro-Western parties took office in Ukraine more than a year ago. Ukraine has also sought to bolster its finances through restructuring its external debt. Russia holds the entirety of one Ukrainian $3 billion Eurobond and has refused the deal offered by Kiev, putting forward instead its own terms in a proposal that expires on Tuesday. There is no sign that the two sides have moved closer to a compromise on the bond, which matures on Dec. 20. The Ukrainian Finance Ministry has said it cannot legally offer Russia better terms than those agreed with its other creditors. The International Monetary Fund is expected to change its policy to allow it to lend to countries in arrears, maintaining Ukraine's access to financial assistance if it does not repay Russia this month. Both sides have expressed a willingness to fight out the issue in court, should efforts to negotiate a deal fail. (Reporting by Alessandra Prentice; Editing by Catherine Evans, Larry King)
