IMF in talks with Ukraine leaders on bailout plan |
According to the above article Christine Lagarde of International Monetary Fund (IMF), had a chat to Ukraine's Poreshenko and exiting prime minister Yatsenyuk.
The discussion involved implementation of the authorities' reform program and policy package agreed to 'with IMF staff'.
Unsure of what the authorities' reference was about.
Which multiple authorities they are referring to?
Or is this a reference to joint IMF and Ukraine implementation of the loan program (which goes hand in hand with a tighten-your-belts slash-program)?
Anyway, IMF's giving Ukraine a little lovin' -
$17.0 billion - 2yr 'financial lifeline' to Ukraine ....................... - approved by IMF ...................... (2014, late April)
- $3.19 billion - First Instalment of 'aid' to Ukraine........ - disbursed by IMF ...................... (2014, early May)
- $1.40 billion - Second Instalment of 'aid' to Ukraine .. - preliminary approval by IMF ...... (2014, late July)
Ukraine's received 'preliminary approval' from IMF for a second instalment advance of $1.4 billion.
The IMF 'aid program' (which I assume is the loan program) is conditional upon economic reforms demanded by IMF being met by Ukraine.
According to the article, IMF did caution earlier that Ukraine's economy would contract faster than predicted, due to unrest in the east of the country resulting in:
- revenue shortfalls from disrupted industry; and
- higher spending on military.
