EU leaders agree €315 billion fund to boost economies

[Superboy]

World Bank OKs USD 378.4 M Loan for Power Sector Upgrades in Ukraine - Novinite.com - Sofia News Agency

World Bank which is owned by American oligarchs can print as much money as it wants. 378.4 million is nothing. 378.4 quadrillion is more like it.

 

[Hindustani78]

European Commission suggests EUR 1.8 bln more be allocated to Ukraine as macro-financial aid
08.01.2015

The European Commission is ready to provide further assistance to Ukraine, which has been hit hard by a deep recession.

"Today the Commission has proposed new macro-financial assistance (MFA) to Ukraine, of up to EUR 1.8 billion in medium-term loans," the EC said in a statement.

The new MFA programme, which is to be approved by the European Parliament and the Council of Ministers of the EU, is intended to assist Ukraine economically and financially, considering the critical challenges the country is facing, including a weak balance of payments and a poor fiscal situation.

The intention is also to help the new reform-orientated government strengthen the country, and deal with economic and political challenges. The macro-financial assistance proposed on January 8 will be linked to certain reform initiatives, the EC said.

"Our actions speak louder than our words. The European Union has provided unprecedented financial support and today's proposal proves that we are ready to continue providing that support," European Commission President Jean-Claude Juncker said when commenting on the EC's proposal.

Once the MFA decision has been adopted, a prerequisite for disbursement will be the successful continuation of Ukraine's current IMF program and the implementation of economic and financial policies in particular that the Commission – on behalf of the EU – and the government of Ukraine will agree on in a Memorandum of Understanding, the EC said.

The policies that the Commission considers important include further fiscal consolidation, continuation of the comprehensive reforms in the energy and banking sectors, as well as improving overall macroeconomic management.

It will also be important to strengthen economic governance, transparency and pursue judicial reforms and the fight against corruption in order to improve conditions for business activity and sustainable growth.

Subject to the adoption of the Commission proposal by the European Parliament and the Council, the proposed new EUR 1.8 billion program can be implemented in the course of 2015, and in early 2016.

It would be the third MFA program for Ukraine since 2010. In the course of 2014 alone, the Commission disbursed EUR 1.36 billion in support of Ukraine under existing programs. The disbursement of the final tranche of EUR 250 million under these programs could be expected by the spring of 2015, subject to successful implementation by Ukraine of agreed policy measures and a continued satisfactory track record with the IMF program.

 

[Superboy]

Money is fake. 1.8 billion? Meh. How about 1.8 quintillion? Bullets kill. What do money ever do?

 

[Hindustani78]

Money is fake. 1.8 billion? Meh. How about 1.8 quintillion? Bullets kill. What do money ever do?

Its macro-financial aid and Ukraine do need financial aid to over come its crisis.

Macro-Financial Assistance (MFA) is a form of financial aid extended by the EU to partner countries experiencing a balance of payments crisis. It takes the form of medium/long-term loans or grants, or a combination of these, and is only available to countries benefiting from a disbursing International Monetary Fund programme.

A first Macro-Financial Assistance(MFA) package of EUR 610 million, based on decisions from 2002 (EUR 110 million) and 2010 (EUR 500 million), was provided to Ukraine to help support economic reforms in the country and address persistent external financing difficulties. The Memorandum of Understanding outlining the economic and financial policy conditions for the disbursement of the assistance was signed in February 2013. The first tranche of EUR 100 million was disbursed mid-May 2014, shortly after the IMF approved a new two-year Stand-By Arrangement (SBA) for Ukraine. The second tranche of EUR 260 million was disbursed in mid-November 2014. A last disbursement of EUR 250 million will follow in 2015, subject to successful implementation of the policy conditions agreed with Ukraine and a continuous satisfactory track record of the ongoing IMF programme.

In light of political developments in early 2014 and the acute vulnerability of the Ukrainian economy and the country's acute balance of payments needs, the Commission proposed on 19 March 2014 a new MFA loan of up to EUR 1 billion. This proposal was accompanied by a detailed evaluation of the economic issues in Ukraine and the related MFA objectives. It was endorsed through a decision adopted by the Council on 14 April 2014. The Memorandum of Understanding listing the policy conditions associated with the disbursement of the funds was signed in May 2014. The two tranches of each EUR 500 million were disbursed in June and December 2014.

Disbursement of the funds under both MFA operations are subject to satisfactory progress with policy conditions, which fall into four thematic areas (as reflected in the Memoranda of Understanding): public finance management and anti-corruption; trade and taxation, energy and financial sector. Disbursement is also conditional on a continuous satisfactory track record of implementing an adjustment and structural reform programme that is supported by the IMF Stand-By Arrangement.

In the context of a deeper than expected economic recession notably linked to the continuing conflict in the east of the country, Ukraine's external financing needs have increased significantly, which led the Commission to propose a third MFA loan of up to EUR 1.8 billion on 8 January 2015. This new MFA programme, once approved by the European Parliament and the Council, will be part of the EU's support for the economic adjustment and structural reform programme of the Ukrainian authorities in the context of the ongoing balance of payments crisis.

 

[Superboy]

Its macro-financial aid and Ukraine do need financial aid to over come its crisis.

Macro-Financial Assistance (MFA) is a form of financial aid extended by the EU to partner countries experiencing a balance of payments crisis. It takes the form of medium/long-term loans or grants, or a combination of these, and is only available to countries benefiting from a disbursing International Monetary Fund programme.

A first Macro-Financial Assistance(MFA) package of EUR 610 million, based on decisions from 2002 (EUR 110 million) and 2010 (EUR 500 million), was provided to Ukraine to help support economic reforms in the country and address persistent external financing difficulties. The Memorandum of Understanding outlining the economic and financial policy conditions for the disbursement of the assistance was signed in February 2013. The first tranche of EUR 100 million was disbursed mid-May 2014, shortly after the IMF approved a new two-year Stand-By Arrangement (SBA) for Ukraine. The second tranche of EUR 260 million was disbursed in mid-November 2014. A last disbursement of EUR 250 million will follow in 2015, subject to successful implementation of the policy conditions agreed with Ukraine and a continuous satisfactory track record of the ongoing IMF programme.

In light of political developments in early 2014 and the acute vulnerability of the Ukrainian economy and the country's acute balance of payments needs, the Commission proposed on 19 March 2014 a new MFA loan of up to EUR 1 billion. This proposal was accompanied by a detailed evaluation of the economic issues in Ukraine and the related MFA objectives. It was endorsed through a decision adopted by the Council on 14 April 2014. The Memorandum of Understanding listing the policy conditions associated with the disbursement of the funds was signed in May 2014. The two tranches of each EUR 500 million were disbursed in June and December 2014.

Disbursement of the funds under both MFA operations are subject to satisfactory progress with policy conditions, which fall into four thematic areas (as reflected in the Memoranda of Understanding): public finance management and anti-corruption; trade and taxation, energy and financial sector. Disbursement is also conditional on a continuous satisfactory track record of implementing an adjustment and structural reform programme that is supported by the IMF Stand-By Arrangement.

In the context of a deeper than expected economic recession notably linked to the continuing conflict in the east of the country, Ukraine's external financing needs have increased significantly, which led the Commission to propose a third MFA loan of up to EUR 1.8 billion on 8 January 2015. This new MFA programme, once approved by the European Parliament and the Council, will be part of the EU's support for the economic adjustment and structural reform programme of the Ukrainian authorities in the context of the ongoing balance of payments crisis.

Ukraine doesn't need money. Ukraine needs fighter jets, tanks to fight Russia and take back Crimea.

 

[Hindustani78]

Ukraine doesn't need money. Ukraine needs fighter jets, tanks to fight Russia and take back Crimea.

Ukrainian economy is bad damaged .

Jan 8th 2015
Ukraine's economy: No Christmas presents | The Economist
In 2014 its economy probably contracted by a tenth and its currency, the hryvnia, lost about half its value. Figures released yesterday showed that inflation is now touching 25% (imports are now much more expensive). The government is fast running out of cash. Ukrainian bond yields increased to a record high this week: financial markets are preparing for a default.
Ukraine passed a budget on December 29th (though for the next month or so it is subject to revisions). That means that the International Monetary Fund, which has been supporting Ukraine financially for the past few months, will return to Kiev today. The IMF will be looking to disperse two more dollops of money, probably worth around $3 billion in total. So far it has lent about $5 billion.

But $3 billion is unlikely to be enough; even if Ukraine gets that it will struggle to avoid default in 2015 (see chart). In the chart we make a series of rosy assumptions, but default still looks very likely—unless the West is prepared to lend much more money.

 

[Superboy]

Ukrainian economy is bad damaged .

Jan 8th 2015
Ukraine's economy: No Christmas presents | The Economist
In 2014 its economy probably contracted by a tenth and its currency, the hryvnia, lost about half its value. Figures released yesterday showed that inflation is now touching 25% (imports are now much more expensive). The government is fast running out of cash. Ukrainian bond yields increased to a record high this week: financial markets are preparing for a default.
Ukraine passed a budget on December 29th (though for the next month or so it is subject to revisions). That means that the International Monetary Fund, which has been supporting Ukraine financially for the past few months, will return to Kiev today. The IMF will be looking to disperse two more dollops of money, probably worth around $3 billion in total. So far it has lent about $5 billion.

But $3 billion is unlikely to be enough; even if Ukraine gets that it will struggle to avoid default in 2015 (see chart). In the chart we make a series of rosy assumptions, but default still looks very likely—unless the West is prepared to lend much more money.

I don't think Ukraine has any economic problems. Poroshenko is building an army of 250,000 with whatever remains of Ukraine's military hardware left over from the Soviet era and spring is fast approaching which means offensive begins in about a month.

TASS: World - Ukraine’s 2015 military budget to double — defense minister

 

[Hindustani78]

I don't think Ukraine has any economic problems. Poroshenko is building an army of 250,000 with whatever remains of Ukraine's military hardware left over from the Soviet era and spring is fast approaching which means offensive begins in about a month.

TASS: World - Ukraine’s 2015 military budget to double — defense minister

Ukraine do have problems that's why IMF and EU have granted loans and financial aids. When wars are fought always it affect the economies , when it has hurted Russian economy then why it would not affect Ukrainian economy ?

Ukraine have even started modernization program of its military and even Ukraine military is getting help from EU countries, United states and Canada.

Minister of Defense informed that as per the Law of Ukraine On State Budget 2015 the expenditures are allocated as follows: armament development — UAH 14,0 bln, Armed Forces of Ukraine training — UAH 1,9 bln, and staff costs — UAH 28,7 bln.

 

[Superboy]

when it has hurted Russian economy then why it would not affect Ukrainian economy ?

Russia's economy is stronger than ever. Economy should be measured by production and services, not by $.

Russia's Industrial Production Picks Up in September - NASDAQ.com

 

[Hindustani78]

Russia's economy is stronger than ever. Economy should be measured by production and services, not by $.

Russia's Industrial Production Picks Up in September - NASDAQ.com

Dec. 10 2014
Russian Prime Minister Medvedev Says Weak Ruble Is Hurting Russia | Business | The Moscow Times

The weakness of the ruble is hurting Russia, which has lost tens of billions of dollars because of sanctions imposed by the West in the Ukraine crisis, Prime Minister Dmitry Medvedev said on Wednesday.
In a sober assessment of an economy edging towards recession, Medvedev said Russia should reduce its reliance on energy exports, which makes it vulnerable to falls in the global price of oil.

Asked about the impact of the Western sanctions, Medvedev said: "Our economy, probably, has lost tens of billions of dollars."

 

[Superboy]

Dec. 10 2014
Russian Prime Minister Medvedev Says Weak Ruble Is Hurting Russia | Business | The Moscow Times

The weakness of the ruble is hurting Russia, which has lost tens of billions of dollars because of sanctions imposed by the West in the Ukraine crisis, Prime Minister Dmitry Medvedev said on Wednesday.
In a sober assessment of an economy edging towards recession, Medvedev said Russia should reduce its reliance on energy exports, which makes it vulnerable to falls in the global price of oil.

Asked about the impact of the Western sanctions, Medvedev said: "Our economy, probably, has lost tens of billions of dollars."

Ruble is a currency. The higher the $ to ruble exchange rate, the better for Russia. Oil sold on the international market is denominated in $ which is pegged to supply and demand.

 

[Hindustani78]

Ruble is a currency. The higher the $ to ruble exchange rate, the better for Russia. Oil sold on the international market is denominated in $ which is pegged to supply and demand.

So you are saying that Russian economy was not damaged

Russian gold and forex reserves have fallen to their lowest levels since 2009 as the central bank has spent billions to prop up the currency. Last week, reserves dropped by as much as $15.7 billion to below $400 billion, down from over $510 billion at the start of the year.

 

[Superboy]

So you are saying that Russian economy was not damaged

Russian gold and forex reserves have fallen to their lowest levels since 2009 as the central bank has spent billions to prop up the currency. Last week, reserves dropped by as much as $15.7 billion to below $400 billion, down from over $510 billion at the start of the year.

Not damaged. If hypothetically convert Russian economy in rubles to dollars then it would be less but in the real world such a hypothetical conversion has no practical meaning.

Russia's economy can only be measured in production and services. It cannot be measured in dollars or rubles.

 

[Hindustani78]

Not damaged. If hypothetically convert Russian economy in rubles to dollars then it would be less but in the real world such a hypothetical conversion has no practical meaning.

Russia's economy can only be measured in production and services. It cannot be measured in dollars or rubles.

Here its better to see in terms of International foreign currency reserves.

09 January 2015 14:32
KYIV, December 5 /Ukrinform/. Ukraine's foreign exchange reserves as of December 1, 2014 amounted to $9.966 billion compared to $12.587 billion a month earlier, the National Bank of Ukraine (NBU) has reported.

because of this only IMF is helping out Ukraine and EU is giving financial aid.

 

[Galad]

because of this only IMF is helping out Ukraine and EU is giving financial aid.

Stop your nonsense!Neither IMF nor EU is helping Ukraine as you keep lying.Both are giving -- loans--- .Loans with lots of strings attached.Loans with interest rate.Loans given under such conditions and at such rate that Ukraine will stay IMF slave forever.Loans which will have to be repayed.At the expanse of the population.