Financial aid to Ukraine may cause IMF deadlock

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According to economists financial assistance to Ukraine from the IMF can cause ‘chain’ reaction among other countries experiencing similar economic difficulties.

It’s worth reminding that on June 20, 2015 Ukraine is to pay Russia interest on eurobonds amounting to 3 billion dollars. In case the International Monetary Fund continues to adhere to a course of assistance to Kiev, such countries as Greece, for example, could demand similar support from the IMF.

On May 19 the Ukrainian government has approved the law allowing the stoppage of payments for the external re-structured debts. Payments for the Russian eurobonds also fall under action of such law.

As economists note, by providing financial aid to Ukraine, the IMF is itself adding to the deadlock, by potentially giving other debtor countries the opportunity to not pay back to their creditors.