Categorized | Ukraine

IMF Tricks Did Not Save Ukraine From Economic Collapse

NOVANEWS

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Sputnik 

Ukraine may face complete economic failure as inflation progresses and foreign loans are unable to save the country’s economy. Kiev should admit that its plans to join the EU were unsuccessful, German newspaper Deutsche Wirtschafts Nachrichten (DWN) reported.

The International Monetary Fund (IMF) has done a lot to contribute to the rehabilitation of Ukraine, but the threat of hyperinflation is still urgent, while the country itself is close to bankruptcy, the newspaper wrote.

According to the National Bank of Ukraine, inflation in the country reached 44 percent this year compared to 24.9 percent last year. Chaotic economic policies, corruption and civil war in the eastern regions of the country have put Ukraine on the brink of national bankruptcy, the article said.

The IMF tried to stop the destruction of the Ukrainian economy using various legal tricks. In order to help Ukraine which still has not repaid its debt to Russia, the IMF hastily changed its rules and can now provide loans to insolvent countries.

Just this year alone, Ukraine has received about ten billion dollars in loans from the IMF and other international donors. The financial aid, however, failed to improve the state of the country’s economy.

If the devaluation continues at the current pace, Kiev will not only run out of money, but also lose the trust of its Western partners. At the moment, Ukraine is actually living on the money of European and American taxpayers. Sooner or later, European countries may stop “pumping” their finances into the economically desperate state, the article said.

With regard to the catastrophic economic situation, the prospect of membership in the European Union, which the Ukrainian government dreams of, is a complete fiasco. Neither Ukraine nor the EU can afford such a serious challenge under the current conditions, DWN concluded.

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