Against the backdrop of a Russian special operation in support of Donbass, the Ukrainian government has requested emergency funding from the International Monetary Fund (IMF).
This was stated by the managing director of the organization Kristalina Georgieva.
“Discussions are being conducted remotely with the participation of employees from Washington.
In addition to ongoing political consultations, we are exploring all options for further financial support, including under the existing Standby Loan Agreement (SBA) for the remaining $2.2 billion,” Georgieva said.
Recall that in the summer of 2020, the IMF approved the SBA program to support Ukraine during the pandemic for a period of 18 months and in the amount of $5 billion. Kyiv immediately received the first tranche in the amount of $2.1 billion, but after that financial assistance to the country was temporarily suspended.
The fund was dissatisfied with the large budget deficit of Ukraine, as well as the interference of the authorities in the work of the National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor's Office.
Later, Kyiv complied with the requirements of the IMF and in November 2021 received the second tranche of $700 million.
According to Kristalina Georgieva, under the current conditions, the IMF will continue to cooperate with the Ukrainian authorities and provide support to the country.
A similar position was voiced in the World Bank.
“We are ready to provide Ukraine with immediate support and are working on options for such assistance, including the rapid allocation of funding.
The World Bank Group, together with development partners, will use all of our tools to provide financial and technical assistance for a rapid response,” said the head of the organization, David Malpas.
At the same time, experts interviewed by RT consider it unlikely that international organizations will provide real assistance to Kiev.
According to political scientist Andrey Suzdaltsev, if the government of Ukraine receives money, the funds will immediately be used to pay off the country's current obligations to Western partners.
At the same time, Alexander Losev, CEO of Sputnik Capital Management, assumes that funding will not be allocated at all.
“Of course, the IMF and the World Bank announced assistance, as they could not do otherwise, given the rules of the current political game.
However, in reality, no financial institution will give money to a country with such risks.
Top managers are well aware that the Ukrainian authorities have little time left, and the payment is likely to be stolen.
This is tantamount to lending money to Germany in early May 1945, ”Losev emphasized.
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On February 24, 2022, Vladimir Putin announced the start of a special military operation.
The decision was made in response to the appeal of the heads of the LPR and DPR with a request for help in repelling aggression from Ukraine.
According to the president, this measure was forced and is self-defense.
We are talking about the protection of the Donetsk and Lugansk People's Republics within the framework of previously signed friendship and cooperation agreements.
At the same time, the Russian leader stressed that there are no plans to occupy the territory of Ukraine.
“The goal is to protect people who have been subjected to bullying and genocide by the Kiev regime for eight years.
And for this, we will strive for the demilitarization and denazification of Ukraine, as well as bringing to justice those who committed numerous bloody crimes against civilians, including citizens of the Russian Federation, ”Putin said.
Tranche from the population
Against the backdrop of the current situation, on February 25, the National Bank of Ukraine transferred about $620 million to the state budget.
In addition, the regulator opened a special account to raise funds for the needs of the army.
Meanwhile, the government of Ukraine plans to start issuing war bonds worth more than $13 billion, Prime Minister Denys Shmyhal announced this on the evening of February 25.
“The government has decided to carry out public domestic borrowing in the amount of up to 400 billion hryvnia through a phased issue of military bonds,” the head of the Ukrainian Cabinet announced.
Note that war bonds are debt obligations guaranteed by the government.
Buyers of securities lend their money to the country's leadership, and the authorities use the funds received to finance military operations.
As Alexander Losev recalled, states actively issued war bonds during the First and Second World Wars.
According to the expert, in the current conditions, the population of Ukraine may begin to spend their last savings on the purchase of securities, but the money will no longer be spent on the goals designated by the government.
“Most likely, hostilities will end in a week.
Therefore, the issue of such bonds, in fact, is an attempt by the current government of Ukraine to seize and steal the remaining money from the frightened population.
These funds, if they are collected at all, will not be used for any military operations.
The regime will take the money with it when it flees the country.
Frankly, this is a scam,” says Losev.
As Andrei Suzdaltsev believes, some countries may show interest in buying Ukraine's war bonds as part of "Western solidarity."
At the same time, the expert is also sure that Kyiv will no longer have time to allocate this money for military needs, and the funds will not appear in the Ukrainian treasury and the Ministry of Finance.
“Money is likely to be intercepted by the Ukrainian elite and used for living in exile, where many have already gone.
We saw that the US and the UK offered asylum to the leadership of Ukraine.
There is the experience of governments in exile, and this will be the main funding,” Suzdaltsev concluded.