The authorities of Ukraine expect to start rebuilding the country’s economy through loans that can provide international financial institutions.
Negative balance of payments and the rising cost of gas for a long time exacerbate the precarious situation of Ukraine’s economy. The result of the winter 2013 began a sharp weakening of the national currency. The national Bank of Ukraine has not been able to stop the fall, because it had no chance: the gold reserves have long vanished, in addition one of the requirements of the IMF was just the liberalization of the exchange rate.
The Ministry of Finance and the national Bank of Ukraine to assess the need “emergency” assistance to $35 billion by 2016 thus in 2014, Ukraine has to pay about $7,091 billion on foreign loans. In 2015, Ukraine is obliged to pay creditors $7,699 billion, with $974 million will be used to repay debt to the IMF and $3 billion – the repayment of the first tranche of the Eurobonds bought by Russia. In 2016 Ukraine will have to pay $4.34 billion.
However, despite repeated promises to EU officials, the IMF and other agencies, the funds have not been allocated to Kiev, despite already begun the process of reforming the economy according to the creditors.
Chronicle of unfulfilled promises followed in his blog journalist Anatoly Shary.
22 Feb – the seizure of power in Kiev protesters. Almost immediately, it was determined that the post of acting President of Ukraine is Oleksandr Turchynov, the Prime Minister went Yatsenyuk. After a brief political formations almost immediately, it became clear that funds to continue the work of the government and state bodies of the country, and the country’s economy is on the verge of collapse.
Promise No. 1
Olli Rehn
European Commissioner for Finance
“If Ukraine asks for help, economic or financial, we are ready to provide it”.
Some time later, he confirmed the EU’s readiness to allocate funds for the salvation of Ukraine
Promise No. 2
Olli Rehn
European Commissioner for Finance
“We are ready to provide substantial financial support to Ukraine as soon as the decision is reached political crisis, based on democratic principles, and as soon as the new government is ready and strongly customized on the institutional and economic reforms”.
February 23 – the amount of promises Kiev has increased significantly against initial expectations to $20 billion.
Promise No. 3
Elmar Brok
The head of the foreign Affairs Committee of the European Parliament
“I think that will be 20 billion euros on the table for reform, and this support will be provide immediately to prevent default. We will support this government. People should not be afraid of what will happen defaulted and will not be achieved reforms and Ukraine will remain alone, without support.”
On the same day, the EU confirmed Catherine Ashton during a meeting with acting President of Ukraine Alexander Turchinov.
Promise No. 4
Catherine Ashton
EU high representative for foreign Affairs
“Ukraine needs to solve the issue of forming a new government. After this there should be developed a plan to solve the economic issues so we can determine how best to provide assistance to Ukraine”.
February 25 – the European Commissioner for budget Janusz Lewandowski announced its readiness to allocate funds in March, however, the amount of financial assistance was reduced 20 times.
Promise No. 5
Janusz Lewandowski
European Commissioner for budget
“We are able to provide macroeconomic assistance. In the beginning there was talk of 600 million euros, but at the moment can be already 1 billion euros, i.e. the amount necessary for Ukraine until the situation stabiliziruemost. But we can do it, only having information about what will be done with the finances of the country.”
26 February – it became known that the European authorities have not yet determined the timing of assistance.
Deferral No. 1
Olivier Bailly
The Representative Of The European Commission
“We can not mark their date at present, are unable to say exactly when these periods will be, but we’re working on it”.
February 28 – the power of Europe after the United States once again expressed readiness to allocate about $1 billion.
Promise No. 6
Frank-Walter Steinmeier
The Minister of foreign Affairs of Germany
“I was glad to hear that the United States is also ready to help – about $1 billion, and the European Union will probably do the same, about the same amount of money”.
However, at the same time, the head of the IMF Christine Lagarde said that it is too early to declare any amounts.
Delay No. 2
Christine Lagarde
The head of the IMF
“We see nothing critical, able at the moment to justify the panic. I think it is extremely premature to assess its financial needs. We need to rely on the facts, we must rely on the situation it is in reality.”
March 1 – the United States declared its readiness to establish a consultation process, which will accelerate the allocation of aid to Ukraine.
Promise No. 7
Barack Obama
The President of the United States
“In the future, we will continue close consultations with allies and partners, the Ukrainian government and the IMF, to provide the new government with considerable assistance to ensure financial stability, support the necessary reforms, to allow Ukraine to conduct successful elections and to support Ukraine on its path towards a democratic future”.
March 2 – the United States reaffirmed their readiness to assist Ukraine.
Promise number 8
Jack Lew
The Minister of Finance
“The United States will provide Ukraine maximum financial assistance for recovery from the economic crisis.”
Followed by Liu G7 Finance Ministers pledged to provide financial support to Ukraine.
3 March – plans to allocate funds Ukraine shared European Commission President Jose Manuel Barroso.
Promise No. 9
Jose Manuel Barroso.
The Head Of The European Commission
“We are preparing ways to support Ukraine and hold talks with the IMF. It is important that we demonstrate our commitment to Ukraine’s sovereignty and at the same time we are now preparing a package of assistance to Ukraine. We work with the International monetary Fund, I personally and the Commission are preparing ways to support Ukraine.”
On the same day, the US Congress was preparing to begin debate on the package of assistance to Ukraine in the amount of $1 billion.
March 5 – the European Union has identified the necessary amount of aid to Ukraine.
Promise No. 10
Jose Manuel Barroso.
The Head Of The European Commission
“Today we have identified to help Ukraine. This package in the amount of 11 billion euros over the coming years.”
On the same day it became known that the USA plans to increase contributions to the IMF, to assist Ukraine
Promise number 11
Jack Lew
The Minister of Finance
“We are discussing with Congress the possibility of approval of the draft 2010 about increasing contributions to the IMF, which will provide Ukraine with additional resources.”
The race promises including the European Bank for reconstruction and development.
Promise No. 12
EBRD is ready to invest in Ukraine at least 5 billion euros by 2020, as part of a coordinated international financial assistance programme in support of structural and macroeconomic reforms.
March 6 – once again the representative of the EC confirmed its intention to allocate funds Ukraine.
Promise No. 13
Jan Tombinski
The head of the EU delegation to Ukraine
“The EU in parallel with the IMF mission work on the provision of financial assistance in the amount of 11 billion euros, which will be provided as macroeconomic Ukraine loan for the implementation of projects with the EBRD and other potential donors.”
The race promises decided to include Japan.
Promise No. 14
Fumio Kishida
The Minister of foreign Affairs of Japan
“We have a positive attitude towards financial assistance to Ukraine. The required amount will be determined on the basis of the results of the research mission of the IMF and consultations with the Ukraine”.
Amount of allocated EU funds in Ukraine rose to $15 billion.
Promise No. 15
Jose Manuel Barroso
The Head Of The European Commission
“We intend to provide Ukraine $15 billion in financial aid. This package will be given over several years.
The goal is to help the country stabilize its economy and finances and work towards political and economic reform”.
March 10 – the European Union intends to increase assistance to Ukraine of up to 1.6 billion euros.
Promise No. 16
Olli Rehn
European Commissioner for Finance
“The first tranche of this amount can be recovered quickly as soon as agreement is reached with the IMF. We want to help Ukraine to stabilize the situation in political terms. And at the same time it is necessary to create favorable conditions for economic stabilization”.
12 March – the head of the European Commission Jose Manuel Barroso said the need to urgently provide assistance to Ukraine.
Promise No. 15
Jose Manuel Barroso.
The Head Of The European Commission
“Next week we will take a further decision in relation to urgent macro-financial aid of 1.6 billion euros to support Ukraine because this country need our help.”
The government of Canada has said it is ready to allocate Ukraine $220 million.
Promise No. 16
Stephen Harper
The Prime Minister of Canada
“Canada is ready to give Ukraine $220 million as additional measures to ensure sustainable economic growth, democracy and good governance”.
March 19 – Sweden has declared its readiness to allocate financial aid package for Ukraine.
Promise No. 16
Carl Bildt
The Minister for foreign Affairs of Sweden
“Sweden is preparing a North-Baltic financial aid package for Ukraine in cooperation with the IMF, and our help will be substantial.”
March 27 – the IMF has announced its intention to recommend to the Board of Directors of the Fund to lend Ukraine $14-18 billion
Promise No. 17
Nikolay Georgiev
The head of the IMF mission in Ukraine
“The agreement reached with the authorities is subject to approval by management and the Executive Board of the IMF. It is expected that the Executive Board will consider it in April after the adoption by the authorities of the country of effective and comprehensive package of interim measures designed to stabilize the economy and to create conditions for lasting economic growth.”
Promise No. 18
EBRD may invest about 1 billion euros per year over the next few years, significantly raising its investments from the range of 550 million euros to 750 million euros provided earlier in 2014, the increase provided for in the context of the reaction of the international community, including announced today agreement with the IMF on a macroeconomic stabilization programme.
The EU once again stated its intention to provide Ukraine with 1.6 billion euros.
Promise No. 19
Simon O’connor
Press Secretary of the European Commission
“We welcome the agreement announced by the IMF this morning, the stand-by credit for Ukraine, which should be considered by the IMF Executive Board in April. The EU plays an important role in international efforts with respect to international financial assistance.”
Allocated
US senators approved the allocation of Ukraine financial assistance in the amount of $50 million on “various needs, such as improving democratic governance, transparency, accountability, ensure the rule of law, fighting corruption and holding free and fair elections and the strengthening of democratic institutions and civil society organizations in Ukraine”.
1 April – Sweden approved the allocation of 175 million euros for 6 years.
Minister for international development cooperation of Sweden hill Angstrem
“The Swedish government adopted a new strategy of assistance for East Europe for the period from 2014 to 2020, in which support for Ukraine is 175 million euros for the period. Given the events that will occur, the amount of funds can increase.”
The German authorities have decided to increase the amount of funds allocated to Ukraine 45 million euros.
Promise No. 20
Friedrich Kitchelt
State Secretary of the Federal Ministry for economic cooperation and development of Germany
“The German government is ready to increase funding for stabilization activities in Ukraine 45 million euros.”
April 11 – the first EU funds allocated for Ukraine.
19 million euros to Ukraine
Today, the European Commission has carried out (payments) in favor of the government of Ukraine in the framework of the program of sectoral budget support in the total amount of 19,075 million euros. Of them 14,775 million euros will be aimed at improving the management of the state border and $ 4.3 million Euro to improve control in the sphere of environmental protection
April 14 – the Council of the European Union for foreign Affairs approved a package of financial assistance to Ukraine by the volume of 1,610 billion euros.
