The IMF is creating a plan to help bailout Ukraine. Ukraine is expected to receive a $27 billon loan over the next two years. The exact amount will be depend on how much the supporting countries will lend. These countries include the US and European Union. This is Ukraine's biggest economic crisis in their post-Soviet history.
The United Nations General Assembly voted for a nonbinding resolution. This would make the Crimean referendum to rejoin Russia in valid and urged other nations not to recognize it. This vote showed that there is very little international support for Russia over the Ukrainian crisis. Russian President Valdimir Putin is preparing for the sanctions from the West.
Ukraine is holding presidential elections in May, which makes it difficult for the actions in order to receive the IMF loan to be completed. This loan will range from $14 billion to $18 billon. The IMF is requiring Ukraine to have regulations to ensure its banks, improve the business environment, and fight corruption.
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2 comments:
Hopefully Ukraine can use the money from the IMF to improve their economic condition. Some people criticize the IMF for their conditions for lending, saying that they actually can cause more economic problems. Hopefully this is not the case for Ukraine.
Unlike the UN Security Council, there are evidently some international organizations that can commit to binding actions without Russia's blessing. Arguably, the $18 billion is worth more than any security council resolution, but I think political solutions are somewhat more crucial at present to avoid their getting further into debt.
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