The IMF approves $ 17 billion loan to Ukraine - the country's fate is sealed

Friday, May 2, 2014

The IMF formally annexed Ukraine by approving a 17 billion dollars loan over two years period; the first tranche of $3.2 billion loan is available immediately. According to IMF officials, the money should be spent on rebuilding the country's economy.

IMF Director Christine Lagarde said sanctions against Russia clearly undermine the Ukrainian economy, given that the main market for Ukrainian goods was Russia. Therefore, I urge the parties to sit at the negotiating table as soon as possible said the IMF official.

Of course, the 17 billion dollar loan is not a gift. One of the harshest conditions that the IMF demands from the Ukrainian government is to raise the price of gas for Ukrainian households by 50%. This is catastrophic news for the population, as it has been able to heat their homes during cold winters because of the cheap Russian natural gas. As a consequence of the IMF conditions decline in household consumption will drop by 8 % in the year 2014, according the World Bank forecast.

London financial analysts on the other hand, doubt that the $ 17 billion will be enough.

Economists working for one of the largest independent macroeconomic research company, Capital Economics stressed that just the Ukrainian gas import debt to Russia exceeds 20 billion dollars.

Figures released Wednesday showed that the crisis was taking its toll on an already weak Ukrainian economy, with gross domestic product shrinking by 2.0 percent in the first quarter compared with the last three months of 2013.

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Anonymous said...

Ukraine Crisis Accelerating the Restructuring of the World

The Ukrainian crisis has not radically changed the international situation but it has precipitated ongoing developments. Western propaganda, which has never been stronger, especially hides the reality of Western decline to the populations of NATO, but has no further effect on political reality. Inexorably, Russia and China, assisted by the other BRICS, occupy their rightful place in international relations...

The Ukrainian crisis has highlighted the magnitude of Western public opinion manipulation by major media, TV channels like CNN, Foxnews, Euronews and many others as well as the entire printed press powered by Western news agencies. The manner in which the Western public is misinformed is impressive, yet it is easy to have access to a wealth of information on all sides. It is very worrying to see how many citizens of the world are being lured into a russophobia never seen even in the worst moments of the Cold War...
Humiliated by its treatment by the West since 1989, Russia woke up with Putin and began to reconnect with a great power policy by trying to reconstruct the lines of the traditional historical strength of Tsarist Russia and the Soviet Union. Geography often controls strategy. Having lost much of its "historical territories", in the words of Putin and his Russian and non-Russian population, Russia has set a great national and patriotic project for recovering its superpower status of "global" actor by first securing the safety of its land and sea borders. This is exactly what the West wants to prevent in its unipolar worldview. Good chess player that he is, Putin is several moves ahead thanks to a deep knowledge of history, the real world and the aspirations of a large part of the population of the territories formerly controlled by the Soviet Union. He knows the European Union to perfection, its divisions and weaknesses, the real military capability of NATO and the state of Western public opinion reluctant to see an increase in military spending in times of economic recession. Unlike the European Commission, whose project coincides with that of the United States to strengthen the Euro-Atlantic political-economic-military bloc, European citizens in their majority do not seek more eastward enlargement of the EU, neither with Ukraine nor with Georgia, nor with any other country of the former Soviet Union.

With its posturing and its threats of sanctions, the EU, slavishly aligned with Washington, shows that it is powerless to "punish" Russia seriously. ..

0jr said...

its way less than the amount of gold the amerikan jews stold from them that they stold from Hungary

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