{"id":1603918,"date":"2022-08-12T18:38:51","date_gmt":"2022-08-12T22:38:51","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1603918"},"modified":"2022-08-12T18:39:06","modified_gmt":"2022-08-12T22:39:06","slug":"key-ukrainian-adviser-says-new-5-billion-imf-loan-would-reassure-other-creditors","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/key-ukrainian-adviser-says-new-5-billion-imf-loan-would-reassure-other-creditors\/","title":{"rendered":"Key Ukrainian adviser says new, $5 billion IMF loan would reassure other creditors"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fkey-ukrainian-adviser-says-new-5-billion-imf-loan-would-reassure-other-creditors%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1603918&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Andrea Shalal<\/p>\n<p>KYIV (Reuters) \u2013     Securing a new $5 billion loan from the IMF would help reassure Ukraine\u2019s other creditors that the war-torn country\u2019s macroeconomic situation was under control, President Volodymyr Zelenskiy\u2019s chief economic adviser told Reuters on Friday.<\/p>\n<p>Fresh financing from the International Monetary Fund for around 18 months could serve as the anchor for a larger package of $15 billion-$20 billion to help Ukraine weather the economic crisis caused by Russia\u2019s invasion, the adviser, Oleg Ustenko, said.<\/p>\n<p>He said Ukrainian officials were in touch with the global lender about the potential request, adding that the goal should be to move forward as quickly as possible.<\/p>\n<p>Ustenko\u2019s comments came just over two weeks after Ukraine\u2019s central bank governor, Kyrylo Shevchenko, told Reuters that he was seeking as much as $20 billion from the IMF over two or three years \u2013 an amount that would have put Ukraine well over the fund\u2019s \u201cexceptional access limit\u201d for lending. <\/p>\n<p>The large size of that request had triggered intense debate within the IMF because it would have also raised questions about the sustainability of Ukraine\u2019s debt.<\/p>\n<p>The revised plan would be modeled on a financing package https:\/\/www.imf.org\/en\/News\/Articles\/2015\/09\/14\/01\/49\/pr15107 agreed in 2015, after Russia\u2019s invasion of the Crimea region of Ukraine, that included $17.5 billion in IMF funding but helped leverage total funding of $40 billion.<\/p>\n<p>\u201cAn IMF program of $5 billion would be in line with earlier funding levels and might be a catalyst for funding from other courses, including the EU, (the U.S.) Treasury and other individual countries,\u201d Ustenko told Reuters.<\/p>\n<p>Ukraine\u2019s previous $5 billion loan program was canceled in March as the IMF approved $1.4 billion in emergency financing with few conditions in the early weeks of Russia\u2019s invasion.<\/p>\n<p>Ukrainian authorities pledged to work with the Fund to design a new economic program \u201caimed at rehabilitation and growth, when conditions permit.\u201d    <\/p>\n<p>Ukraine, grappling with the internal displacement of some 7 million people by Russia\u2019s invasion on Feb. 24, is scrambling to marshal resources to deal with energy shortages, rising inflation, and a worsening humanitarian crisis as winter approaches.<\/p>\n<p>It faces a 35%-45% economic contraction in 2022 and a monthly fiscal shortfall of $5 billion, with only a third of some $29 billion in Western aid pledges having materialized thus far, economists say.<\/p>\n<p>This week, Ukraine\u2019s overseas creditors backed its request for a two-year freeze on payments on almost $20 billion in international bonds, but Ukraine must still make $635 million in principal payments on prior IMF loans beginning in mid-September.<\/p>\n<p>Ustenko said Ukraine hoped to move forward quickly with negotiations with the IMF with an eye to reaching a preliminary agreement before those payments were due.<\/p>\n<p>RISKS, PRECEDENTS <\/p>\n<p>Proponents of the new program argue that Ukraine had made good progress on tackling deficits and addressing corruption before the war, and the new lending would allow it to stabilize the economy. But critics say a large new loan could put the Fund at risk, as Russia could still win the war and refuse to make good on Ukraine\u2019s debts.<\/p>\n<p>Mark Sobel, U.S. chair of the OMFIF financial policy think tank and a former senior Treasury official, said the Fund was set up to be a \u201cfirst responder to severe systemic global economic crises\u201d and it should act to help Ukraine pay pensions and other obligations.<\/p>\n<p>Martin Muehleisen, a former IMF strategy chief now affiliated with the Atlantic Council, said even a loan of $5 billion would raise debt sustainability questions in the midst of a war and set worrisome precedents, shifting it clearly to Western priorities.  <\/p>\n<p>\u201cThe IMF was used by the U.S. and its allies for strategic purposes during the Cold War. Tying the fund closer to the West\u2019s political objectives may again be called for, but it would conflict with the IMF\u2019s aspiration to be a truly global organization,\u201d Muehleisen said.<\/p>\n<p> (Reporting by Andrea Shalal; additional reporting by David Lawder; Editing by Leslie Adler and Marguerita Choy)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2737227\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/tagreuters.com2022binary_LYNXMPEI7B0TT-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI7B0TT-VIEWIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Andrea Shalal KYIV (Reuters) \u2013 Securing a new $5 billion loan from the IMF would help reassure Ukraine\u2019s other creditors that the war-torn country\u2019s macroeconomic situation was under control,<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1603918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1603918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1603918"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1603918\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1603918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1603918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1603918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}