IMF Approves USD 17 B Loan to Ukraine
The International Monetary Fund (IMF) has approved a USD 17.1 B bailout for Ukraine to help the country's economy.
The loan is dependent on strict economic reforms, including raising taxes and energy prices.
The money will be released over two years, with the first installment of USD 3.2 B available immediately.
The head of the IMF, Christine Lagarde, said the IMF would check regularly to ensure the Ukrainian government followed through on its commitments.
In March Ukraine put up gas prices by 50% in an effort to secure the bailout.The government has also agreed to freeze the minimum wage.
The bailout had to be approved by the IMF's 24-member board, which includes a Russian representative.
The IMF loan will also unlock further funds worth USD 15 B from other donors, including the World Bank, EU, Canada and Japan.
- » Brussels Bans the Broadcast of World Cup Football Matches in the Center of the City
- » Kosovo Moves to Establish Army Bypassing Serb veto
- » The EC Offers Mandatory Fingerprints in ID Cards
- » Merkel, Macron Meet to Plot Euro Zone Reform Road Map
- » Americans Waste 150,000 Tons of Food per Day
- » Saudi Cinema Launch Ends Decades-old Ban, Public Screenings Start Friday
The Ukraine owes 20 billion Euros to Western banks and 9 billion has to be paid back this year.
So the IMF is taking it from Western tax payers, giving it to the Ukraine who can then pay the Western banks.
The priority in the West is to protect its banks because without this IMF money to the Ukraine they would not get paid.
Who pays firstly the tax payers in the West and then the Ukranian people through higher taxes, higher energy costs and government cutbacks.
So the poor in the Ukraine will pay big to keep Western millionaire bankers in their well funded jobs.
The releasing of the money in stages by the IMF can be timed to match the repayment schedule to Western banks.
This is one of the reasons that the West needs a pro western government in Kiev to make sure the bank loans to the West get paid.