Published on
by
Common Dreams

IMF to Ukraine: We'll Give You Money If You Give Us Austerity

$18 billion "bailout" conditional on stringent economic reforms

by
Sarah Lazare, staff writer

The International Monetary Fund announced on Thursday a $14 to $18 billion "bailout" for Ukraine that is contingent on Kiev's imposition of stringent austerity measures.

The package, which is slated for approval by the IMF's board next month, will unlock credits of up to $27 billion from the United States, European Union, Japan, and other countries over the coming years if Ukraine imposes "economic reforms."

According to Reuters, the IMF's requirements include: "allowing the national currency, the hryvnia, to float more freely against the dollar, increasing the price of gas for the domestic consumer, overhauling finances in the energy sector and following a more stringent fiscal policy."

Ukraine's new government on Wednesday passed a drastic increase in domestic gas prices, to take effect May first, and pledged to gradually reduce energy subsidies — a widely unpopular move that former President Viktor Yanukovych refused to take.

The deal comes amid ongoing anti-austerity protests across Europe, including hundreds of thousands strong protests across Spain over the weekend. Critics charge that austerity measures, by eroding vital public goods and services, deepen crises of poverty and inequality.

_____________________

This is the world we live in. This is the world we cover.

Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Simply Don't Exist.

Share This Article

More in: