{"id":28040,"date":"2015-06-15T05:38:22","date_gmt":"2015-06-15T03:38:22","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=28040"},"modified":"2015-06-15T05:38:56","modified_gmt":"2015-06-15T03:38:56","slug":"28040","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/28040\/","title":{"rendered":"IMF to Help Ukraine"},"content":{"rendered":"
Triple C rated Ukraine will keep getting money from the International Monetary Fund even as bond lords fret over whether or not they\u2019ll ever see a dime for lending to them.<\/div>\n
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IMF chief Christine Lagarde said in an open letter to the financial community that the the bailout fund was standing by. Lagarde said that the National Bank of Ukraine (NBU) cannot be counted on to use its reserves to pay for interest on bonds. Most emerging markets keep foreign reserves in order to lower credit risk. Lenders often use reserves as a gauge to a government\u2019s ability to service its debt.<\/p>\n

\u201cThe NBU\u2019s international reserves cannot be used for sovereign debt service without the government incurring new debt,\u201d she said in a statement to the market. \u201cUkraine\u2019s debt repayment capacity is limited by its fiscal capacity. Since Ukraine lacks the resources under the program to fully service its debts\u2026in the event that a negotiated settlement with private creditors is not reached and the country determines that it cannot service its debt, the Fund can lend to Ukraine.\u201d<\/p>\n

In other words, IMF member states will help Ukraine pay emerging market bond fund managers and banks. They will undoubtedly receive a haircut on the principal amount.<\/p>\n

Ukraine owes the IMF $18 billion over the next four years. Defaulting on the its debts will plug the $15 billion hole in the funding the IMF is providing Ukraine.<\/p>\n

\u00a0\"IMF<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Triple C rated Ukraine will keep getting money from the International Monetary Fund even as bond lords fret over whether or not they\u2019ll ever see a dime for lending to them. IMF chief Christine Lagarde said in an open letter … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-28040","post","type-post","status-publish","format-standard","hentry","category-finance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t