Ukraine has become a hostage to the constant postponement of international loans due to concerns that corruption still thrives among the Kyiv authorities and the provided funds will simply vanish into a corrupt 'bottomless pit'.
Western creditors have postponed the issue of providing money to Ukraine until the end of 2015, while it was planned to be discussed this spring. Ukraine was given time to prepare detailed proposals on how to effectively spend the loan.
Currently, the West is looking for resources to combat the humanitarian crisis in Ukraine as a result of the conflict with separatists. At the same time, it is claimed that Western countries view the package of financial assistance to Ukraine for economic recovery as the most effective tool against the Kremlin in the tug-of-war for influence over the war-torn state. However, the West is wary of providing assistance to a country where corruption has flourished for decades.
The most successful economies - America and Germany - plan to allocate very large amounts for long-term loans, but they want to know how their funds will be spent, explaining the situation with loans in the European Union.
According to one EU official, Ukraine still hopes to hold a donor conference with creditors scheduled for April 28 (after the Ukraine-EU summit, which will take place on April 27).
A Ukrainian source in power also stated that the country is still preparing for the conference in April: 'However, we are aware that someone in the European Union wishes to postpone it to the end of 2015'.
In February 2015, Johannes Hahn, the European Union Commissioner responsible for EU neighborhood policy, stated that the EU would do everything possible to avoid a 'bottomless pit'. The only thing they would accept is a clear plan.
It should be noted that this week the European Parliament approved 1.8 billion euros in EU financial assistance to Ukraine over two years. In total, international creditors may provide Ukraine with about 65 billion dollars as part of one of the largest financial assistance programs in the world in recent years.
The EU notes that Ukraine was able to submit a reform plan on time. However, there are still doubts in the European Union regarding how many schools, roads, and hospitals in Ukraine still need funding and how much the judicial reforms will be aimed at eradicating corruption.
Next month, a 'comprehensive reform plan' is expected to be drawn up at the EU-Ukraine summit.
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