WASHINGTON -- Bowing to Republican opposition,
The decision to drop the
"As much as I think a majority of the Senate would have liked to have gotten that done with IMF in it, it was headed to nowhere in the House," Reid told reporters.
Republicans, while not necessarily opposed to the IMF changes, argued that its inclusion in the Senate bill was unnecessarily delaying funds to shore up the Ukrainian interim government.
The IMF approved changes several years ago as part of a plan to bolster participation in the fund from countries with emerging economies. Ukraine's ability to borrow from the fund would almost double to $14.5 billion, officials said. The U.S. is the only IMF member country that has not approved the changes. White House officials said Monday that the additional loan authority would be key to Kiev's ability to stabilize its economy.
The fund's managing director,
Reid acknowledged that the White House would be "disappointed" by his decision, but cited Secretary of State
"We have to get IMF reform. But we can't hold up the other" bill, Reid said.
The Senate had overcome an initial procedural hurdle on its Ukraine bill Monday. Final passage of the revised legislation could come no later than Wednesday, Reid said.