15:37 GMT +316 October 2019
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    $17.5 Billion Bailout Approved By IMF May Not Be Enough

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    A new IMF program to provide financial assistance to Ukraine was approved as a measure to help Ukraine avoid default on Tuesday.

    The IMF bailout comes on the heels of the Ukrainian Minister of Economics Aivaras Abromavicius admitting Ukraine was bankrupt. The terms of the bailout agreement total more than $17.5 billion provide over the next four years. The bailout could reach around $40 billion over next four years with help from other lenders said IMF Managing Director Christine Lagarde.

    "If we divide $17.5 billion into four, we get a quite small number during the year — $4 billion. So, the IMF will give money for Ukraine to pay out the old loan and pay off the Eurobonds owned by American funds. It will not give more money," the expert pointed out.

    However, according to Ukrainian economic expert Alexander Okhrimenko, the appropriated bailout is not enough to stem its crisis.

    As the financial package to Ukraine will only be limited to $17.5 billion. "Lagarde stated $40 billion to be given by mythical investors. She did not name the lenders only saying someone wants to help Ukraine," explained Okrimenko.

    "There will be no $40 billion bailout. Perhaps, the IMF will give around 4$ billion per year to prevent the default. However, Ukraine will be forced to raise the housing rate and to fire a huge number of doctors and teachers because of the expenses. The crisis will be continuing as no radical improvements will come," he said.

    Related:

    IMF, Kiev Agree on New $17.5Bln Rescue Plan for Ukraine – Lagarde
    EU and IMF Seeking Financial Backers for Ukraine Rescue Plan – Reports
    Kiev Discusses With IMF Solely Short-Term Program at Present
    Tags:
    International Monetary Fund, bailout, default, Aivaras Abromavicius, Christine Lagarde, Europe, Ukraine
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