The IMF now has the blood on their hands
This should put to rest any notion that Ukraine is using its money for social uplift. Via AFP:
Ukraine’s premier warned Friday that Kiev would freeze its debt repayments if no immediate deal was found with private lenders because it had to fund its escalating campaign against pro-Russian fighters.
Prime Minister Arseniy Yatsenyuk said on his return from a crunch visit to Washington that the International Monetary Fund had given his embattled government a few weeks’ reprieve to enact laws needed for the release of new loans.
But the Western-backed cabinet leader said the Fund had signalized its willingness to let Ukraine restructure debts at its own pace – and that interest payments to Western commercial lenders and Russia may stop as early as next week.
“Today, Ukraine spends as much on foreign and domestic debt servicing as it does on defence,” Yatsenyuk told a government meeting.