adminNEW YORK. — The IMF announced yesterday a US$14 to US$18 billion bailout for Ukraine to avoid bankruptcy but tied to painful and unpopular reforms amid the country’s escalating standoff with Russia. The agreement in principle — worth the equivalent of 10,8-13,1 billion euros — imposes tough economic conditions that will alter the lives Ukrainians who have grown accustomed to the comforts of Soviet-era subsidies and social welfare benefits.
But it also appears to herald a fundamental shift in Kiev from a reliance on Russian help to save a crumbling system to a commitment to the types of free-market efficiencies that could one day bring Ukraine far closer to the West. “Ukraine’s macroeconomic imbalances became unsustainable over the past year.” — AFP.
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