Tuesday, January 5, 2016

Meanwhile, Back in the Ukraine

The Ukraine has pretty much died down as any kind of major story in terms of impact on the global financial system, but that does not mean nothing is happening there. Below are links to some recent news articles which point out that things could heat up again there. As usual, the IMF is right in the middle of a difficult situation.

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"Ukraine said on Wednesday it had doubts that the International Monetary Fund would approve all changes adopted by parliament in the 2016 state budget, a condition to secure the next tranche of financial aid. "I'm not entirely sure that all these changes will be agreed", Finance Minister Natalia Yaresko told a news conference."   . . . . .


"The International Monetary Fund will decide whether to resume lending to Ukraine at the end of next month, after the country’s parliament approved the 2016 state budget, Central Bank Governor Valeriya Gontareva said.
The former Soviet state hopes the Washington-based lender will extend two tranches of its $17.5 billion bailout worth a combined $3.4 billion, Gontareva told reporters in Kiev on Tuesday. The funds, originally slated for this year, were delayed by months of wrangling over the budget and a new tax code." . . . . . 
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Now, here is a Russian media take on the situation. Russia is upset that the IMF changed its rules making it easier for the Ukraine to default on a debt it owes to Russia.


"Ukraine may face complete economic failure as inflation progresses and foreign loans are unable to save the country's economy. Kiev should admit that its plans to join the EU were unsuccessful, German newspaper Deutsche Wirtschafts Nachrichten (DWN) reported."  . . . . . . 

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