Without an IMF bailout Ukraine’s economy is headed for a total collapse, declared Russia’s official news site Vesti last week.
“The IMF has yet again delayed its decision on the latest bailout tranche for Ukraine, if other creditors also stop financial assistance, Ukraine’s economy is headed for a collapse” claims Vesti, indirectly alluding to an interview by Ukrainian Finance Minister Alexander Danyliuk in the Economic Pravda publication.
Contrary to Vesti’s claims, Minister Danyliuk is confident that Ukraine will receive the next IMF financing tranche, and even without it, Danyliuk does not paint a picture of doom and gloom, he simply says that Ukraine will have to resort to unpopular savings cuts and a sequestration of the federal budget, setting caps on government spending.
Vesti does not refer to Danyliuk’s interview directly, but rather writes that in a recent interview with Ukraine’s Finance Minister, he warned of impending disaster, if the IMF holds back on the Ukraine loan, credits from the US and the EU will also be jeopardized.
