Ukraine Aid Measure Approved With IMF Link House Opposes

[Purveyor]

By Derek Wallbank and David Lerman Mar 12, 2014 5:53 PM ET

The Senate Foreign Relations Committee approved an aid package for Ukraine that will face opposition from Republicans over changes in U.S. funding for the International Monetary Fund.

The Democratic-led panel voted 14-3 today for a bill that would give Ukraine $1 billion in loan guarantees it’s seeking as Russian forces occupy the Crimean peninsula. It also would authorize sanctions against Ukrainians and Russians deemed responsible for corruption and violence.

The measure, which had bipartisan support in the panel, “sends a message to Russia and the world that we support Ukraine,” said Democratic Senator Robert Menendez of New Jersey, the panel’s chairman.

U.S. House Speaker John Boehner earlier today rejected attempts by Democrats and the Obama administration to tie additional funds for the IMF to a Ukraine aid package.

“This IMF money isn’t necessary for dealing with this Ukraine crisis that we see today,” Boehner, an Ohio Republican, told reporters in Washington. House Republicans have resisted proposals to increase funds for the IMF for years.

more...

http://www.bloomberg.com/news/2014-03-12/ukraine-aid-measure-approved-with-imf-link-house-opposes.html

[dipsydoodle]

1. IMF should lend Ukraine the funds

subject to Ukraine agreeing once again the terms agreed by Ukraine 2008 and 2010 on both of which occasions they defaulted and funding ceased : namely....... devaluing its currency, reducing government spending by way of halving state pensions and increasing gas prices to consumers to at least the level the government pay for gas from the minimal amount at present.

Those are also the terms required by the EU for the $15 billion now promised - terms which match those of the IMF.

All secured against state assets of course as is the rule these days.

$1 billion will last them about a month.........big deal.

[dipsydoodle]

2. US financial aid to Ukraine in limbo as Congress wrangles with legislation.

A political row over reforms to the International Monetary Fund threatened to frustrate US attempts to agree on financial aid for Ukraine on Wednesday as US president Barack Obama met with its prime minister in an attempt to show united western support.

Though warmly received in Washington, the visit by Arseniy Yatsenyuk coincided with the difficult process of assembling a coalition in the US Congress to pass legislation for a package of loan guarantees and sanctions against Russia.

The Senate foreign affairs committee passed a version of the legislation by 14 votes to three on Wednesday afternoon, but included controversial reforms to the IMF which the administration says will increase its flexibility to respond to future crisis.

These are opposed by many Republicans and a separate amendment initially intended to placate them was not included by the GOP’s ranking member on the committee, senator Bob Corker, for fear of further complicating the bill’s passage.

http://www.theguardian.com/world/2014/mar/12/us-aid-ukraine-limbo-congress-imf-reforms