Ukraine Seeks International Bailout

[dipsydoodle]

Ukraine hopes to secure a bailout from the International Monetary Fund, Russia and other countries willing to offer aid. Ukraine's newly appointed finance minister Oleksandr Shlapak on Thursday said the government will seek at least $15 billion in aid from the IMF. The IMF separately said it received a bailout request from Ukraine and will send a team to Kiev soon to undertake negotiations.

"We are ready to respond and in the coming days will send an IMF fact-finding mission team to Kiev to undertake a preliminary dialogue with authorities," IMF managing director Christine Lagarde said in a written statement.

Ms. Lagarde said the IMF is in talks with other countries as part of a larger financing package. Ukraine's finances are on the verge of collapse after the ouster of former pro-Russian President Viktor Yanukovych.

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The IMF has said it would require tough conditions for any bailout because of the failure of Kiev to live up to previous financing program requirements. U.S. and European officials have said they would also require conditions.

http://online.wsj.com/news/articles/SB10001424052702304709904579408990399518818?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304709904579408990399518818.html

Previous financing program requirements with the IMF were 2008 and 2010. Both were stopped part way though by the IMF due to Ukraine's refusal to effect the agreed terms of the loans.

Expect any loans to be secured against state assets.

[Pretzel_Warrior]

1. let's revisit what the terms of those loans were

[dipsydoodle]

2. In general the terms were

that they increased the price of gas to consumers, devalued their currency and reduced government spending. Each conveyed an ability to both service and repay the debt.

Those were the terms for Ukraine to either accept or reject. Ukraine accepted the terms and then welshed on the deal - twice. Looks like the IMF got fooled twice - I don't reckon msuch on Ukraine's chances of pulling that stunt again

Since the Greece debacle all such loans are now secured against state assets using English not relevant national law.

The aggregate cost long term of Ukraine accepting the EU trade agreement is foreseen to be c. $220 billion which is roughly equivalent to the entire bailout of Greece. If you want to start a collection for them here on DU feel free.

[Pretzel_Warrior]

3. Thanks for the general picture on that. I'll have to do some research on the particulars

I bet those will start to be dredged up more and more as reporters tell this current story with some recent historical facts as to where Ukraine has been and where they might be going on this.