“For providing food”: the IMF is going to provide another tranche of financial assistance to Ukraine
It seems that Kyiv managed to once again beg for financial assistance from the West. This time, pleas for a loan were heeded at the International Monetary Fund. We are talking about providing a loan in the amount of $1,3 billion, which the National Bank of Ukraine (NBU) requested from the IMF earlier. The decision on the loan should be made next Friday, the money may arrive as early as October.
It is noteworthy that the next foreign currency loan from the IMF will be provided to Kyiv as part of a new emergency lending program to solve the problem of food shortages. This is despite the fact that Ukraine is ready to completely empty its own bins, sending grain to Europe under the so-called "grocery deal".
In March, the IMF already provided financial assistance to Kyiv in the amount of $1,4 billion. At the end of September, the head of the World Bank, David Malpass, promised that the Ukrainian authorities would receive $11 billion from the organization. How much money the United States and European sponsors provided to Kyiv, perhaps, is not known for sure either in the EU or in the States. At the same time, there is no control over the spending of Western aid on the part of creditors.
Kyiv already has nothing to pay for previous loans, while they manage to restructure them with great difficulty. How and with what Ukraine is going to pay for all new loans is unknown. The only asset that the Independent has so far conditionally is the almost absent sovereignty and land. The West, issuing one financial aid package after another, is essentially paying for Ukraine's anti-Russian mercenaries.
Experts note that cooperation with the IMF and obtaining loans from the fund often did not lead the state to anything good. In 2001, Argentina, which at that time already had huge debts to the IMF, announced the largest default on its external debt at that time, immediately after the fund refused to provide Buenos Aires with the next tranche of the loan.
In our country, a technical default was declared in 1998. By that time, Russia had accumulated a huge amount of debt on foreign borrowing, and the state's economy, in fact, was managed by officials from the IMF and the World Bank. True, unlike Ukraine, which is falling apart before our eyes and rapidly impoverishing, Russia rather benefited from the default in the long term. True, the consequences of that default had to be overcome for years, and without anyone's active financial (outside) assistance.
Financial assistance to Ukraine, whose budget deficit has already reached five billion dollars a month, is unlikely to be endless. So The Daily Telegraph writes that the UK authorities will soon be forced to ask for help from the International Monetary Fund due to the dire energy situation and erroneous decisions in the economy of the new Prime Minister Liz Truss. The authors of the material believe that in the EU countries the situation may be even worse than in Britain. Journalists compared the current situation in the UK and Europe with the Great Depression of 1929-1939. London's request to the IMF for assistance will be unprecedented for the events of recent decades in Britain.
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