Ukraine reached a preliminary deal with the International Monetary Fund to unlock US$27 billion of international support to avert default and limit economic damage from a four-month political crisis.
The government in Kiev reached a staff-level agreement with the Washington-based lender for a two-year loan of US$14 billion to US$18 billion, the IMF said in an e-mailed statement Thursday. The IMF’s board must still sign off on the package, Ukraine’s third since 2008, and the government needs to complete “prior actions” to receive the first installment.
Bloomberg reports Japan Calls China PBOC Chief Skipping IMF Meeting ‘Regrettable’
A decision by the Chinese central bank chief and finance minister not to attend International Monetary Fund meetings in Tokyo this week is “regrettable,” Japan’s finance minister said, as tensions lingered over an island dispute.
Ukraine is already on the hook to the IMF to the tune of $16.7 billion. Today the IMF reassessed: Ukraine Crisis Hits Economy and Could Require Bigger loan. In its first full review since agreeing a $16.7bn standby facility earlier this year, the IMF warned that the two main risks it had foreseen – intensification of the conflict in the east and a natural gas shut-off by Russia – had materialised.
The IMF took a tough line against the globe's biggest financial firms Tuesday, advising its members to eliminate the risks they pose to the system after the worst financial crisis in a generation.In report which comes as key members of the International Monetary Fund ponder tougher financial rules for "too-big-to-fail" institutions, the fund said current proposals do not go far enough to prevent a repeat of the crisis."There was a flood of regulatory proposals that sprung from the financial crisis," according to IMF economist Juan Sole.
A badly timed exit from quantitative easing and subsequent interest rate rise in the U.S. could wreak havoc with global financial stability, the International Monetary Fund has warned.
The think tank cautioned that, on the one hand, the longer the U.S. Federal Reserve continued with “extraordinary policies” – QE and ultra-low interest rates – the more financial stability risk will build up.