IMF To Bailout Ukraine With $18 Billion Loan

Photo: The International Monetary Fund has reached a staff-level agreement with the Ukrainian leadership on opening a two-year credit worth from $14 billion to $18 billion. © Bloomberg

I.M.F. Prepares $18 Billion In Loans For Ukraine -- New York Times

LONDON — After three weeks of urgent negotiations with the interim government of Ukraine and in an atmosphere of great power competition, the International Monetary Fund announced on Thursday an agreement to provide up to $18 billion in loans over two years to prevent the country’s default.

The agreement, announced in Kiev, the Ukrainian capital, will hinge on the country taking steps to let the value of its currency float downward, to cut corruption and red tape, and, crucially, to reduce huge state subsidies for the consumption of natural gas. The energy subsidies alone represent roughly 8 percent of Ukraine’s gross domestic product, and Russia has said that it intends to raise on April 1 the price of natural gas to Ukraine, which is largely dependent on Russian supplies and which already owes the Russian energy company Gazprom well over $1 billion.

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More News On The IMF Bailing Out Ukraine With An $18 Billion Loan

IMF offers Ukraine up to $18 billion in loans -- AP
IMF agrees bailout for Ukraine -- The Guardian
IMF throws Ukraine financial lifeline, Russia growth slumps -- Reuters
IMF extends $14-18 bn rescue to Ukraine, tied to reforms -- AFP
IMF Reaches Deal to Provide up to $18 Billion to Ukraine -- Wall Street Journal
IMF to Loan Ukraine Up to $18 Billion -- Voice of America
IMF Sees Ukraine’s Debt Level as Sustainable, Spokesman Says -- Bloomberg Businessweek

My Comment: A drop in the bucket .... Ukraine needs far more than$18 billion.

Update: This is where much of the money will probably be going .... In Ukraine, Russian Gas Price Rises 79 Percent In April -- Reuters