Courtesy of Mish.
IMF to Fund Ukraine Wars?
Ukraine is bankrupt. It accepted an $18 Billion IMF Bailout in March, allegedly with strict conditions.
Do those conditions allow war funding?
I have to ask because Ukraine’s President Warns of ‘Constant Military Threat’ along with more military spending and a military parade.
Ukraine’s pro-western president announced $3bn in additional defence spending on Sunday as he warned the war-torn country faced a “constant military threat” for the foreseeable future.
Petro Poroshenko flexed his might by holding a military parade during commemorations of the former Soviet republic’s 23rd year of independence.
Things are going so well for Ukraine’s military that it needs to come up with $3 billion when it is flat broke.
Ukraine Conflict Draining Economy, Hampering Reforms
Ukraine’ prime minister Arseny Yatseniuk noted last Wednesday that Ukraine Conflict Draining Economy, Hampering Reforms.
Ukraine’s conflict with separatist rebels is draining the economy by the day and hampering efforts to implement reforms as required by an IMF bailout programme, Prime Minister Arseny Yatseniuk said on Wednesday.
According to the terms of a $17 billion International Monetary Fund loan package, Ukraine must implement set reforms, but the country, which is virtually bankrupt and running wide external deficits, has had to divert substantial funds in its fight to contain the pro-Russia insurgency.
The economy contracted by 4.7 percent in the second quarter compared with the same period last year. With industrial output plummeting 12 percent in July, the economic outlook for the third quarter is not promising.
In June, Yatseniuk asked the IMF, which decides on the disbursement of the second tranche of $1.4 billion on Aug 29., to take into account the extra financial burden of fighting the insurgency.
Military Spending Math
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