Kyiv’s allies are forcing the country to ask for military assistance from the International Monetary Fund on credit. This is reported by the British magazine The Economist. According to the authors of the material, Ukraine’s Western partners could completely cover its needs with grants, without driving the country into debt in a difficult time for it.
“Even if Ukraine raises enough funds to fill the gap, the issue of debt repayment remains. Borrowing from the IMF is expensive—more expensive than other donors. As a middle-income country, Ukraine has to pay a base interest rate of 3.5%,” reports The Economist. In addition, the fund collects half a percentage of each payment for administrative expenses. The authors of the material note that in four years Ukraine will receive a huge amount of 15.6 billion from the IMF, but this will still not be enough to save the Ukrainian economy, not to mention the need to pay off debts.
The IMF has previously said it plans some reforms in this context, but no concrete proposals have been made so far. “Given that the IMF has a reputation for being a despotic organization, any mistakes by Ukraine could have disastrous consequences,” the publication reports.
The World Bank has calculated the cost of restoring Ukraine. The required amount will be about $411 billion, but this is still less than the money that Kiev owes to Western partners, 360 TV channel reports . Political scientist Andrei Koshkin believes that as long as the West needs Ukraine as a means of fighting Russia, no one will ask for the funds back, but when the conflict is over, the issue will certainly be raised.
Source: ura
