#AceFinanceNews – WASHINGTON – April 11 – Ukraine’s parliament-appointed Finance Minister Oleksandr Shlapak, claims that Ukraine has complied with all terms necessary for getting the first tranche of financial assistance from the IMF.
“We are here for a more specific discussion of the time and conditions of [international] support,” Shlapak told the media in Washington where the spring meeting of the IMF and World Bank is under-way.
“Moreover, Ukraine has met all of the IMF conditions for getting the first tranche.”
The IMF earlier said it would be prepared to extend to Kiev $14-18 billion within the framework of overall international assistance of $27 billion within two years.
IMF Managing Director Christine Lagarde said on Thursday the Fund’s program for Ukraine might be presented to the IMF Board of Governors late April or in early May.
#AceFinanceNews – GREECE – April 01 – Greece is fully financed for the next 12 months, the chairman of Eurozone finance ministers Jeroen Dijsselbloem said on Tuesday.
The country does not want to ask the eurozone for a third bailout, although it is too early to say if it can fulfil that ambition, according to the official.
Full funding one year ahead is a condition for the International Monetary Fund (IMF) to disburse its part of the existing bailout.
According to (Reuters) Greece was cut off from markets in 2010 as the true scale of its debt burden became apparent. But after four years of painful measures to contain debt, two bailouts worth 240 billion euros ($330 billion) and a hit on private bondholders, the Greek economy is expected to return to modest growth this year.
Encouraged by falling bond yields, Greece is considering ending its four-year exclusion from bond markets by selling 1.5 billion-2 billion euros of five-year bonds in a test issue in the first half of the year.
The cash raised would complement money that Athens will get from the euro zone and the International Monetary Fund after a deal in March which unblocks the payment of overdue tranches.
The certainty that Greece will have enough money over the next 12 months to cover its expenses is important because it is a condition for the IMF to keep lending to Athens even after euro zone loans stop at the end of 2014.
“We had assurance from the Troika institutions that Greece is fully financed for the coming 12 months,” Reuters quoted Dijsselbloem as saying.
#AceFinanceNews – KIEV – March 31 – Chairman of the National Bank of Ukraine (NBU) Stepan Kubiv on Monday held the final meeting with a group of World Bank (WB) experts that worked in Ukraine in the period from March 24 to 28.
The NBU press service reported that the experts with Aleksander Pankov in the head had worked in Kiev in order “to determine the priorities and activity guidelines for the Ukrainian financial sector reform that can be implemented with support of the World Bank.”
The WB experts during last week had prepared a plan of action to promote the Ukrainian financial sector reform, the NBU press service said.
This programme can be financed by means of a WB loan worth up to one billion US dollars, granted within the programme of loans for development.
“The action plan will allow the Ukrainian banking system to make a cardinal reconstruction and strengthen stability of the banking sector,” the NBU stresses.
Simultaneously with the WB expert group, a mission of the International Monetary Fund (IMF) was working in Ukraine.
The IMF mission was co-ordinating the terms for granting a loan worth 14 – 18 billion US dollars.
Russian Finance News
#AceFinanceNews – KIEV – March 27 – International Monetary Fund (IMF) is ready to provide Ukraine with $14-18 billion within the common international financial aid program during the two following years.
Head of IMF mission Nikolai Georgiev said this at a briefing on Thursday.
“We have reached an agreement on the economic reforms program in Ukraine, which will be covered by a Stand-By Arrangement program worth $14-18 billion within two years.
The program will give way to financial aid.
The volume of this unblocking is $27 billion within two years,” Georgiev said.
He added that the first tranche would be handed in April, but did not disclose its sum.
Georgiev noted that the tranche would depend on Ukraine’s compliance with the necessary requirements.
#AceFinanceNews – MOSCOW – March 25 Russia has not been cooperating with the International Monetary Fund in searching for ways of providing financial assistance to Ukraine so far.
The Ukrainian side and the International Monetary Fund continue such a search, and we (Russia and IMF) do not, as far as I know,” Russian presidential spokesman Dmitry Peskov said on Tuesday, adding that a Russian representative worked at the IMF, thus “Russia indirectly participates in the process.” “However, it is difficult to speak of disbursing financial aid until Ukraine chooses new legitimate authorities,” Peskov said.
#AceFinanceNews – EUROPEAN UNION – European lawmakers are calling into question the ability of the Troika to effectively deal with the crisis, and many are attacking its methods.
An investigation report due in April will look at the handling of the Greek sovereign debt debacle.
The probe by the European Parliament on how the International Monetary Fund (IMF), the European Central Bank (ECB), and the European Commission (EC) monitored and helped to solve the euro debt crisis, which started in 2008, triggered by the US financial collapse.
“The Troika acts like a governor and visits it’s colonies in the south of Europe and tells them what to do. The measures that they come up with though are not always very effective,” Derk Jan Eppink, an MEP from Belgium who initiated the probe into the Troika, told RT.
The IMF has admitted it made mistakes in the handling of Greece’s first international bailout, but some EU lawmakers want more answers.
Findings are expected to be published in April 2014, a month before the next EU Parliamentary elections.
RT – Finance News and Media Sources
#AceFinanceNews – Moscow – March 19. The Council of IMF and World Bank Governors and a meeting of the G20 financial ministers and central bank governors will be held in Washington on April 11-13.
Storchak cited the financial crisis in Greece, which was discussed within the G20 in terms of its influence on financial stability in general.
Ukraine will not be in the focus of the G20 financial meeting in Washington in April, Russian Deputy Finance Minister Sergei Storchak said “We believe that the G20 remains a club for discussing and preparing decisions on economic issues and financial markets. This is our position,” he said. He also noted that an IMF loan to Ukraine would not be on the agenda of the Washington meeting. “The IMF has a delegation in Kiev, the delegation will return and propose a program,” Storchak said, adding that the decision to issue an IMF loan to Ukraine was in the jurisdiction of the IMF governors. #AFN2014
National bankruptcy skeptics like to claim that while countries went bankrupt hundreds of years ago, such a catastrophe is out of the question in the modern world.
The story of Argentina’s bankruptcy in 2001 proves them wrong.
Most crises follow a common logic which is characterized by sudden onset, rapid growth, and the transition to a new quality and normalcy.
The difference between the Argentinean scenario from the usual canons laid in the absence of the normalization phase – crisis at the time were simply “preserved”, then to break out with renewed vigor.
The decline in GDP of 15%, unemployment at 24%, a default on its foreign liabilities of $ 141 billion, a decline in business activity, the removal of the hard peg to the US dollar and the subsequent devaluation of the Argentine peso by more than 70%. 13% cut in state pensions and civil servants’ salaries.
There was a run on banks following the collapse of the country’s national currency. Argentina’s citizens were so desperate and panicked that many spent nights sleeping in front of the ATMs. The systematic impoverishment of the population led to mass discontent and riots all over the country. Eventually, the situation became so chaotic that President Fernando de la Rúa fled from an enraged mob by helicopter. Despite all the protests and bank runs, the nation simply could not repay its $145 billion in foreign debts.
The country had a population of 35 million, of whom 19 million were classified poor as of this June, with earnings of less than $190 a month; 8.4 million were destitute, with monthly incomes below $83.
Left bankrupt by their government, their bankers and the International Monetary Fund, Argentines have lost faith in their political leadership. Five presidents passed through the Buenos Aires in the span of two weeks, until Nestor Kirchner, a provincial governor until then, assumed the presidency in 2003. Over the next few years he managed to pull the country out of the economic chaos, but evidently the bankruptcy never passes without a trace. Just last month Argentina announced its biggest currency devaluation in a decade, with the peso’s plunge rattling financial markets worldwide. With inflation running at about 30 percent, it seems the country is on the verge of yet another devastating collapse.
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#AceFinanceNews -Allocation of financial aid to Ukraine in the amount of $ 3 billion will depend on the effectuation of structural reforms by the Kiev government, World Bank President Jim Yong Kim said in an interview with Bloomberg.
The report said that Kim, who met with acting Ukrainian Prime Minister Arseniy Yatsenyuk in Washington this week, said it would not be easy for Ukraine to carry out the changes it has pledged.
“Even in the midst of all these political difficulties, they’re going to do things like remove fuel subsidies,” Kim said on Bloomberg TV’s “Market Makers” program.
“We feel that they’re moving forward, so we’re going to be able to move forward we think fairly quickly, if they continue on that path to being committed to those reforms,” he said.
Yatsenyuk is seeking financial aid from Western donors, including $15 billion from the IMF, Bloomberg said.
As he spoke to his hosts in Washington, he promised “real reforms” to stabilize the national economy, currently plagued by a sliding currency and deepening budget deficits.
The IMF has issued persistent calls to the Ukrainian government to reduce the deficit, to allow the currency to fluctuate and to stop paying out gas subsidies that amount to 7.5% of the Ukrainian economy.
NEW YORK, March 14, Itar-Tass