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Wednesday, 19 June 21:19 (GMT -05:00)



Business And Politics News

Sixteen Structural Reforms Is the Cost of the Next IMF Tranche to Ukraine


Anders Aslund, a Swedish economist and a Senior Fellow at the Atlantic Council, commented on the current and future cooperation between the IMF and Ukraine. He claims that Kiev will have to implement at least 16 structural reforms in order to get another tranche from the International Monetary Fund. He also explained why the IMF is still cooperating with Ukraine.
 

 

 

 

 

The expert reminds us that on April 3, the IMF analyzed the progress made by the Ukrainian government in terms of implementing the promised reforms. As a result, the IMF found out that only 54 out of the promised 14 structural reforms where implemented. By the way, those reforms are a part of the cooperation program.
 

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Nevertheless, Ukraine still got another tranche from the IMF, around 1 billion dollars in total. Given the fact that Ukraine failed to stick to the agreement in terms of implementing the reforms by still got the money, some experts started questioning the transparency of the deal between Ukraine and the IMF.
 
There is another curious thing. Instead of focusing on macroeconomic stats, the IMF put forward a range of less significant conditions for letting Ukraine get another tranche. That’s why the expert calls for investigating into what the IMF is actually doing. First of all, no international organization can compare with the IMF in terms of efficiency and responsiveness. The IMF has a lot more money than other financial peers. The local personnel are more skilled and ready for increasing challenges, even though they are paid more handsomely.
 
Moreover, the fund is well-run and has a clear mission. They are quick to react. After the Managing Director makes a decision, a team of experts goes to the country in question in a matter of days. The agreement is usually signed in a matter of 2 weeks at most. The IMF’s Executive Council also needs a couple of weeks to make the final decision, which means that the entire procedure doesn’t require a lot of time and the money is transferred the next day without having to follow some complicated schemes involving local governments, even if this is billions of dollars.
 
All in all, the IMF is designed to support economic stability in order to help various countries around the globe avoid a default and curb inflation. Still, often times, the IMF requires those countries to practice austerity with budget spending cuts and tough monetary policies for local central banks.
 
The IMF started helping Ukraine in March 2015. Back then, the fund planned to sponsor Ukraine with 17,5 billion dollars in total. The first tranche was equal to 5 billion dollars. This nearly doubled Ukraine’s currency reserves at that time. Hardly could any other financial institution have helped Ukraine that fast.
 

 

So, why did the IMF give Ukraine another tranche? The thing is, despite implementing all of the promised reforms, Ukraine did manage to implement the key macroeconomic reforms. To be more specific, the Ukrainian government did manage to balance the budget. At first, they used to expect a deficit equal to 3,7% of the GDP. However, the deficit was reduced all the way down to 2,3%, which is a considerable and even impressive achievement for Ukraine. Inflation also turned out to be slightly less than expected, which is another achievement, though less significant. At the same time, under tough economic and financial conditions, the local government also managed to stop the national currency from devaluing fast. Given this achievements, the IMF seems to have been impressed and that’s why they decided to give more money to help the Ukrainian economy recover.

 

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Experts on Statements Made by Russian Officials about Russian Economic Recovery

International experts have commented on the recent statements made by several Russian officials about some economic recovery in Russia. They say that the weak economic growth isn’t backed by higher standards of living in the Russian Federation.

Publication date: 23 April 02:05 AM

USA Today Names the Reasons Why the USA Is Concerned about the Situation in Ukraine

USA Today has named the reasons why the United states should be concerned about the armed conflict in the East of Ukraine.

 

Previously, US Secretary of State Rex Tillerson asked his European colleagues why American taxpayers should be concerned about the situation in Ukraine. The answer came from his French colleague, who said that the United States should be interested in a strong Europe. On top of that, there are some other reasons why the USA shouldn’t stop thinking about Ukraine.

Publication date: 21 April 12:00 PM

Trump's Plan on Syria: Russia to Stay in Syria, Asad Has to Leave

At this point, several media sources, including Associated Press, report they know the details of the offer brought by Rex Tillerson to Moscow during his official visit. Now, everyone seems to be wondering what exactly Rex Tillerson and Sergey Lavrov discussed during their meeting in Moscow.
 

 

First of all, the sources claim that the USA is ready to unite forces with Russia to destroy the ISIS once and for all. Secondly, Bashar Asad has to quit anyway. He will be even allowed to go to Russia or Iran to avoid prosecution. Thirdly, a temporary government need to be established in Syria to back stabilization and holding a democratic election in Syria. Russia can stay in Syria to back security but they shouldn’t interfere with the local politics.
Publication date: 18 April 11:34 PM

Today's Russia-US Relations Are Worse Than During Obama’s Administration

At this point, the bilateral relations between Moscow and Washington are even worse than they used to be during Obama’s administration. This is what President Putin thinks on the matter.

 

 
Even though the Russian president thinks so, he hasn’t commented on the details of this degradation in the bilateral relations between the 2 superpowers. He assumes that the level of trust between the United States and the Russian Federation has dropped, especially on the military level.
 
Publication date: 18 April 11:05 PM

Will North Korea Become Another Syria for the USA?

The latest events in Syria made many international observers change their mind regarding President Trump. The current conditions also show that getting rid of North-Korean leader Kim Jong Un may also become a major goal for President Trump.

 

 
The news that U.S. aircraft carrier Carl Vinson suddenly reversed and moved to the Western part of the Pacific Ocean in the direction of the Korean Peninsula attracted the interest of the international community. Given the 59 missiles launched to hit a Syrian airbase a couple of weeks ago, this maneuver of the aircraft carrier does raise a lot of concerns.
Publication date: 18 April 03:29 AM

OPEC's Average Oil Price Raises to $53,67

The average price of a barrel of the crude oil produced by the OPEC is reported to have gone all the way up to $53,67. This is confirmed by the cartel’s official website. This happened yesterday. At this point, the price has retraced a bit and is currently trading around $53,36/b, Market Leader reports.

Publication date: 13 April 07:54 AM

Brexit Will Split UK. Scotland’s Getting Ready for Another Referendum

The Scottish government is reported to have initiated another referendum dedicated to quitting the United Kingdom.
 

 

The whole point is, Scotland wants to stay a part of the European Union. Given the fact that being also a part of the United Kingdom, Scotland will also have to quit the EU together with other UK fellow members.
Publication date: 13 April 01:23 AM

Tillerson Brings Russia an Ultimatum on Syria

Rex Tillerson offered Vladimir Putin to betray Bashar Asad. The US Secretary of State came to Moscow with an ultimatum, experts report. At the same time, we are now witnessing an unprecedented situation. The thing is, this is the first time, a high-ranking politician representing a superpower comes to Moscow without knowing whether he is going to meet with the Russian President.

Publication date: 12 April 03:44 AM

USA Won't Make a Deal with Russia at the Expense of Ukraine, Tillerson Says

According to several Western media sources, United States Secretary of States Rex Tillerson had a phone talk with Ukrainian President Poroshenko yesterday, right in advance of his visit to Moscow.

Publication date: 11 April 09:46 PM

German Government Hopes That Moscow Reconsider His Attitude To Bashar Asad

The German government still hopes that the recent events happening in Syria will help Russia make the right decision. In particular, Berlin hopes that Moscow will stop supporting Bashar Asad in the Syrian conflict.  
 
Apparently, no one in Germany or the entire EU is surprised with the Kremlin’s hostile reaction to America’s missile assault on a Syrian airbase belonging to Asad’s troops. Moreover, it would be a surprise to see Moscow show another reaction to the USA’s decision to shell the airbase in Syria in response to the fact that Bashar Asad used chemical weapons, which led to massive deaths of civilians including children.
Publication date: 11 April 10:35 AM