IMF Says Ukraine Fails to Meet Conditions of the April 30th 2014 $17 Billion Loan
The IMF has concluded
that it was too optimistic when loaning Ukraine $17 billion at the end of April
, and that the Ukrainian Government's economic condition is far worse than the IMF expected, and also that the Government's anti-corruption program is too weak to justify the planned loan-installments or "tranches" going to Ukraine. Therefore, "even providing the program of the next two tranches is open to question."
However, this only confirms an earlier assessment, made public on October 28, about which Reuters headlined at the time, "Ukraine unlikely to receive IMF loan tranche this year: finance minister."
And this was already "after warning in September that if Ukraine's conflict with the separatists runs into next year, the country may need as much as $19 billion in extra aid." Ukraine has made clear that it will continue the war, and so the additional $19 billion will also need to be paid to Ukraine in order for its war against the "separatists" to continue.
This rejection comes as a severe disappointment to the Ukrainian Government, whose central bank chief said on November 16th
, "I am still optimistic about us being able to do it [to receive the third tranche] this year." Clearly, that expectation won't be able to be met.
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