6. What might happen if the IMF discontinues its loan program to Ukraine, as it has...
6. What might happen if the IMF discontinues its loan program to Ukraine, as it has threatened to do?
7. Could the IMF have done anything differently to avoid the situation it now finds itself in?
Homework Answers
6) Without IMF's loan program, Ukraine's economy will fall in a bad way. There will be a cash flow problem in Ukraine's economy. The cash balance of the Ministry of Finance will get low and there will be debt service which will put downward pressure on foreign exchange reserves. There will be a financial crisis.
7) Yes, the IMF can help ease the pressure on Ukraine by providing foreign aid which helps the currency reserves. IMF could review the risks with helping Ukraine and make a deal with Ukraine government to pass a bill.
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6. What might happen if the IMF discontinues its loan program to
Ukraine, as it has...
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