cover image: The IMF's Ukraine burden /

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The IMF's Ukraine burden /

14 Apr 2015

It is currently popular — whether one is talking about the Fund’s role in Greece over the past five years or Ukraine now — to follow even negative assessments of the risk the IMF has taken on with a statement such as, “Of course, the Fund is a political institution and must do what its shareholders wish.” But the significant expansion of the Fund’s exposure to Ukraine approved by the executive boa [...] Given the front-loading in ravaged during the 2014 program, as the authorities failed to 2015 of the IMF’s scheduled disbursements ($10 billion of honour the agreed limit on central bank foreign exchange sales the $17 billion total), the IMF is to finance half of Ukraine’s and the commitment to a flexible exchange rate; to reduce the expected financing need in 2015, after having financed 90 public [...] Generally, the more qualifiers in the report on the risks involved in the policy program and projections, the more the 2 All figures are in US dollars. [...] GDP is projected to fall sharply prospectively in 2015) relative to the projections in the again in 2015 (this is largely preordained by the estimated year- April stand-by request and even the first review of the on-year drop in GDP in the fourth quarter of 2014 of over Stand-by Arrangement in August. [...] Second, a comparison obligations on the one hand and capital flight on the other to the of the March 2015 BoP estimates with the projections made in overall BoP deficit.
economic development government politics economics economy credit finance interest rate banks business economic growth economic policy government policy investments macroeconomics imf central bank bank international monetary fund mortgage foreign-exchange reserves government budget current account foreign exchange reserves deficit government budget balance current account deficit credit and debt

Authors

Schadler, Susan

Pages
8
Published in
Ottawa, Ontario

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