Neck Deep in Debt: a Look at Ukraine’s Top Lenders

Most of the $44 billion and about €17 billion Ukraine has received from international financial organizations since it gained independence in 1992 have been squandered due to flawed laws, corruption and lack of political will to implement much-needed reforms, Ukrainska Pravda newspaper wrote.

“Kiev diligently signed off on all kinds of cooperation programs with the IMF but never kept its promise to carry out the reforms,” the newspaper emphasized.

With $29.5 billion already disbursed, the International Monetary Fund tops the list of Ukraine’s foreign lenders.

The EU is in second place with 12 billion euros worth of loans and grants made available to Kiev.

The World Bank brings up the top-three rear with around 12 billion dollars already lined up, Ukrainska Pravda wrote, describing Kiev’s relations with its international creditors as “fairly tense.”

The newspaper mentioned Ukraine’s sovereign debts also to Japan, the US and other countries, but failed to mention the $3 billion Kiev was supposed to have returned to Russia back in December 2015 as part of a 2013 loan.

IMF officials have grown increasingly concerned that the financial assistance to Kiev would be squandered or stolen by corrupt officials."

The economic situation in Ukraine has been looking down since President Viktor Yanukovych was ousted in February 2014.

The International Monetary Fund then decided to disburse $17.5 billion as part of a four-year financial bailout plan for Kiev. The initial $5 billion instalment came in March 2015, the second, $1.7 billion one arrived in August 2015.

A third tranche of assistance has been held up since October because IMF officials have grown increasingly concerned over the ongoing political instability in Ukraine and fear that the financial assistance would be squandered or stolen by corrupt officials.