Relevant:
- Why the Ukrainian economy is in deep trouble
- Ukraine Close To Financial Meltdown (Again); IMF Not Doing Much - The Economist
- Russia Threatens Ukraine With Forced Default Over $3 Billion Loan
- The Financial Times Thinks Ukraine's Financial Meltdown Has Arrived
- ​Kiev introduces rationing, as falling hryvnia causes shopping binge
2014-09-08 — nakedcapitalism.com
...on August 29, just as Kiev began losing its attempt at ethnic cleansing against the eastern Donbas region, the IMF signed off on the first loan ever to a side engaged in a civil war, not to mention being rife with insider capital flight and a collapsing balance of payments. Based on fictitiously trouble-free projections of the ability to pay, the loan supported Ukraine's currency, the hryvnia, long enough to enable the oligarchs' banks to move the money quickly into Western hard-currency accounts before the hryvnia plunged further and was worth even fewer euros and dollars.
...
This raises the question of whether the IMF's loan is legally an "odious debt," being made to a military junta and stolen by government insiders. John Helmer's Dances with Bears calculates that "of the $3.2 billion disbursed to the Ukrainian treasury by the IMF at the start of May, $3.1 billion had disappeared offshore by the middle of August."
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