WHITE HOUSE STATEMENT ON NEW IMF PROGRAM FOR UKRAINE

FROM:  THE WHITE HOUSE
March 11, 2015
Statement by the Press Secretary on Approval of a New IMF Program for Ukraine

We welcome today’s approval by the IMF board of a new four-year $17.5 billion Extended Fund Facility (EFF) for Ukraine.  The EFF, which is underpinned by an ambitious series of economic reforms, underscores both the commitment of the Ukrainian government and central bank to take the steps needed to lay a foundation for robust growth, and the commitment of the international community to provide financing to help stabilize Ukraine’s economy as it implements these reforms.  The United States is working alongside international partners to provide Ukraine with the financial support it needs as it continues to take steps that will transform the Ukrainian economy and strengthen its democracy.

U.S. URGES SUPPORTING GLOBAL AGRICULTURE, FOOD SECURITY

FROM:  U.S. STATE DEPARTMENT 

United States Urges Partner Countries To Increase Support for the Global Agriculture and Food Security Program

Media Note

Office of the Spokesperson

Washington, DC

April 12, 2014

---

Trust Fund Produces High Impact, Sustainable Results in the Global Fight against Poverty and Hunger

The Secretaries of the U.S. Department of the Treasury and the U.S. Department of State yesterday sent a letter to international partner countries urging nations around the world to expand their support for the Global Agriculture and Food Security Program (GAFSP).
The United States spearheaded the creation of GAFSP in the wake of the 2007-2008 food price crisis. It assists in the implementation of pledges made by the G-20 in Pittsburgh in September 2009. GAFSP promotes food security by providing merit-based financing for the agricultural sector in low-income countries, with a focus on smallholder farmers in poor communities. GAFSP financing and technical assistance helps to increase agricultural productivity, link farmers to markets, reduce risk and vulnerability, and improve rural livelihoods. Managed by the World Bank, GAFSP is a multi-donor trust fund and partnership among developing countries, development partners, civil society, and the private sector.
“Since GAFSP was established, we have seen sustainable reductions in hunger and malnutrition, but the challenge of meeting the global demand for food is just as pressing as ever,” wrote Treasury Secretary Jacob J. Lew and Secretary of State John F. Kerry. “We are proud to champion this innovative program, and we call upon our international partners to join us in supporting the work of GAFSP. Together, we can make progress in the effort to eradicate hunger and poverty.”

As leaders gather for the World Bank-International Monetary Fund 2014 Spring Meetings this week, yesterday’s letter highlights the important role that GAFSP is playing in supporting the efforts of some of the world’s poorest countries in alleviating hunger and malnutrition. The letter calls on international partners to pledge additional support to meet funding goals for GAFSP. In October 2012, the United States challenged the international community to provide much needed funding for food security, by committing to contribute $1 to GAFSP for every $2 from other donors, up to a maximum U.S. contribution of $475 million. Since the announcement of the funding challenge, other donors have provided $230 million in new pledges. An additional $720 million in pledges from other donors is needed in order to fully leverage matching funds from the United States.

GAFSP consistently produces high impact, sustainable results, and the program is expected to improve the livelihoods of at least 13 million farmers across 25 countries in Africa, Asia, and Latin America. Already, some countries have seen rural incomes increase by more than 200 percent. In Bangladesh, GAFSP has already reached more than 430,000 farmers in the first two years of a five-year program, providing smallholder producers with training and improved drought- and heat-tolerant seeds and fertilizer that will help farmers adapt to climate change. Two and a half years into its five year-long Rwanda project, GAFSP has already reached more than 92,000 direct beneficiaries, of which half are women. By helping to increase soil fertility in hillside areas, GAFSP has enabled farmers to improve their yields by an average of fourfold across various crops. GAFSP has also supported the introduction of new high nutrient crop varieties that could improve nutritional outcomes for farmers and their families.

PRESIDENT OBAMA'S STATEMENT ON UKRAINE

FROM:  THE WHITE HOUSE 

Statement by the Press Secretary on Ukraine

The United States welcomes the preliminary agreement between the Government of Ukraine and International Monetary Fund (IMF) staff on a loan program of $14-18 billion.  This represents a powerful sign of support from the international community for the Ukrainian government, as we help them stabilize and grow their economy, and move their democracy forward.  The agreement is expected to unlock roughly $27 billion in total support from the international community for Ukraine's people over the next two years, as the country implements historic reforms to address long-standing problems that have undermined Ukraine’s economic strength and prosperity.  It is important now for both the Government of Ukraine and the IMF to move expeditiously and complete the steps necessary to gain approval from the IMF Executive Board. 

Together with our allies and partners, President Obama will continue to build international support for the Ukrainian people at this critical time.  The IMF program will be a central component of a package of assistance to support Ukraine as it implements reforms and conducts free and fair elections that will allow all the Ukrainian people to determine the future of their country.  We are working alongside international partners, including the World Bank and the European Bank for Reconstruction and Development (EBRD), to disburse rapid additional assistance to complement the IMF program and ease Ukraine’s economic transition, particularly for the most vulnerable.  As part of this international effort, we are working with Congress to quickly provide a $1 billion loan guarantee and are offering technical and financial assistance to help Ukraine meet its most pressing needs.  We also remain committed to providing the IMF with the resources it needs – in partnership with Congress – to provide strong support to countries like Ukraine as well as reinforcing the Fund’s governance to reflect the global economy.

WHITE HOUSE FACT SHEET ON INTERNATIONAL SUPPORT FOR UKRAINE

FROM:  THE WHITE HOUSE 

FACT SHEET: International Support for Ukraine

President Obama has made clear that the United States will continue to support the Government of Ukraine, including economically.  We have been working closely with international partners to develop an assistance package that will provide rapid financial and technical assistance to help Ukraine restore economic stability and conduct free, fair, and inclusive new elections that will allow the Ukrainian people to continue to make democratic choices about their future.

The new Ukrainian government has inherited an economy with enormous potential but that is currently financially fragile and uncompetitive.  The Government of Ukraine has said publicly that it will work to meet these urgent challenges.  As the government implements important reforms, the United States will work with its bilateral and multilateral partners to ensure that Ukraine has sufficient financing to restore financial stability and return to growth.

The International Monetary Fund (IMF) is already engaging to help stabilize the Ukrainian economy.  We understand that an IMF mission is currently in Kyiv working with the Ukrainian government at their request.  The IMF will be at the front lines of an international package for Ukraine and is positioned to support  robust and market-oriented reforms needed to restore Ukraine to economic health, including via providing large-scale financing and technical support.  At the same time, the United States is working alongside international partners and the Government of Ukraine to assemble a package of assistance to complement and support an IMF program.  

As part of this international effort, the United States has developed a package of bilateral assistance focused on meeting Ukraine’s most pressing needs and helping Ukraine to enact the reforms needed to make its IMF program a success.  We are working with Congress to approve the 2010 IMF quota legislation, which  would support the IMF’s capacity to lend additional resources to Ukraine, while also helping to preserve continued U.S. leadership within this important institution.  We are ready to work with Congress and the Government of Ukraine to provide U.S. loan guarantees and other financial and technical assistance to address Ukraine’s four most urgent needs:

• Critical assistance with economic reforms, including by cushioning their impact on vulnerable Ukrainians:  The U.S. Administration is working with Congress and the Government of Ukraine to provide $1 billion in loan guarantees aimed at helping insulate vulnerable Ukrainians from the effects of reduced energy subsidies.  At the same time, the United States is moving quickly to provide technical expertise to help the National Bank of Ukraine and the Ministry of Finance address their most pressing challenges.  The United States is dispatching highly experienced technical advisors to help the Ukrainian financial authorities manage immediate market pressures.  The United States will also provide expertise to help Ukraine implement critical energy sector reforms. 
• Conducting free, fair, and inclusive elections:  The United States will provide technical assistance to train election observers, help bring electoral processes in line with international standards, and promote robust participation by civil society organizations and a free and independent media. 
• Combatting corruption and recovering stolen assets:  The United States is preparing to help the government respond to the clear demands of the Ukrainian people for more robust safeguards against corruption and additional efforts to recover assets stolen from the people of Ukraine.  The United States will support the government as it takes tangible steps to reduce corruption and increase transparency, including in areas such as e-government and public procurement.  The United States is deploying an interagency team of experts to Kyiv this week to begin to work with their Ukrainian counterparts to identify assets that may have been stolen, identify their current location, and assist in returning those assets to Ukraine.
• Withstanding politically motivated trade actions by Russia, including in the area of energy:  The United States is preparing to provide technical advice to the Ukrainian government on Ukraine’s WTO rights with respect to trade with Russia.  At the same time the United States is ready to provide assistance and financing to help Ukrainian businesses find new export markets and adjust to trade pressures and to enhance energy efficiency, helping to reduce dependence on imported gas.

G-7 STATEMENT ON UKRAINE

FROM:  THE WHITE HOUSE 
G-7 Leaders Statement

We, the leaders of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States and the President of the European Council and President of the European Commission, join together today to condemn the Russian Federation’s clear violation of the sovereignty and territorial integrity of Ukraine, in contravention of Russia’s obligations under the UN Charter and its 1997 basing agreement with Ukraine.  We call on Russia to address any ongoing security or human rights concerns that it has with Ukraine through direct negotiations, and/or via international observation or mediation under the auspices of the UN or the Organization for Security and Cooperation in Europe.  We stand ready to assist with these efforts.

We also call on all parties concerned to behave with the greatest extent of self-restraint and responsibility, and to decrease the tensions.

We note that Russia’s actions in Ukraine also contravene the principles and values on which the G-7 and the G-8 operate.  As such, we have decided for the time being to suspend our participation in activities associated with the preparation of the scheduled G-8 Summit in Sochi in June, until the environment comes back where the G-8 is able to have meaningful discussion.

We are united in supporting Ukraine’s sovereignty and territorial integrity, and its right to choose its own future.  We commit ourselves to support Ukraine in its efforts to restore unity, stability, and political and economic health to the country.  To that end, we will support Ukraine’s work with the International Monetary Fund to negotiate a new program and to implement needed reforms.  IMF support will be critical in unlocking additional assistance from the World Bank, other international financial institutions, the EU, and bilateral sources.