Monday, December 14, 2009

IMF witholds financing to Ukraine

As UR has already pointed out in November there will be no financing from IMF to Ukraine until after the presidential campaign. IMF grew tired of Ukraine's lies, willingess to use money for financing electoral promises, no budget and discord between president and prime minister. USD 3.5 bn should have been transfered to Ukraine as a part of a USD 16.8 bn loan, but now that tranche is on hold.

As Judy Dempsey writes in NYT until there be consensus among elite in Ukraine there will be no financing from IMF and that basically means until after the presidential elections. Ms. Pazarbasioglu previously heading missions to Ukraine is now likely to step down, apparently being tired of dealing with Ukrainian leadership.

Although Mr. Strauss-Kahn has quite frankly said in November that there will be no co-operation with Ukraine until the end of the presidential campaign, Ukrainian authorities played it in a way that the tranche was going to be paid. However, that game did not seem to succeed afterall. 

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