The IMF assured that they will extradite Ukraine alive, even if it dies
The IMF will continue to finance the country even if the country goes bankrupt, they say German economic news. This statement by the IMF is a slap in the face of the EU, because the IMF issues loans to Greece precisely as long as the country stays afloat.
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IMF chief Christine Lagarde issued a statement: “I welcome the efforts of the Ukrainian government to reach an agreement to create a joint memorandum with all its creditors.” Lagarde announced the continuation of lending to Ukraine, even if the country does not reach an agreement with creditors
The publication writes: “This statement is a slap in the face for the EU and Greece, since the IMF refuses to lend to Athens if it declares bankruptcy.
Ukraine, however, is not only already bankrupt, but recently even adopted a debt moratorium, according to which the government can stop servicing the debt at its own will and discretion.”
Lagarde had already announced after meeting with Prime Minister Arseniy Yatsenyuk and Finance Minister Natalya Yaresko in Washington a few days ago that the IMF "can also provide assistance to Ukraine even if it determines that it is unable to service its debt."
Compared to Greece and the EU, Ukraine is in much worse shape. But Lagarde is going to provide loans to Ukraine even after a default is declared, but not to Greece. In the case of Greece, the IMF insists on reducing debt levels to 2020% of gross domestic product by 120. Ukraine increased its debt level from 41% of GDP in 2013 to more than 90% in 2015, but at the same time Ukraine is at war, the world's largest percentage decline in industrial production, trade and freight transport.
The reason why the IMF has a tougher stance on Greece is the fact that the IMF depends on US taxpayers and revenue from that country. The fund has already contributed huge sums of money to keep Greece afloat, and the loss of Greece would seriously hit not only the EU, but also the US economy itself. In other words, the United States receives a huge risk in the case of Greece, and Kyiv receives what may turn out to be a minor stumbling block. This is why the IMF is so easy to lend to bankrupt Ukraine in violation of its rules, and continues to fight for Greece.
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