The IMF has announced a new bailout package for Ukraine. It will disburse up to $17.5bn over the next three years, subject to all the usual conditions for fiscal austerity and neoliberal reforms conducted by the Ukraine government – see my previous post, https://thenextrecession.wordpress.com/2014/08/31/ukraine-a-grim-winter-ahead/
The bailout package is a joke. As a former IMF economist put it, “The odds of this program surviving intact for four years, or even through the end of 2015, are not much higher than for the original 2014 program,” said Robert Kahn, a senior fellow at the Council on Foreign Relations.
One of the biggest risks is that the bailout is based on a fragile cease-fire holding between Kiev and the militants. A re-escalation would scupper the ability of the government to meet its obligations to the fund. The fund’s approval of the program despite the “exceptional risks”, and the clear breaking of basic rules…
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