EconoMonitor : EconoMonitor » A Bridge to Kiev:
"Much of the public discussion of Ukraine’s financial needs is offtrack. Most of the focus is on whether the IMF will do a program, and of what size. But it will be some time before we have a government in place that can make the needed commitments (e.g., raising energy prices and putting fiscal policy on a sustainable track, reforming state enterprises and the energy sector, and addressing corruption), or sufficient clarity about the economic and political conditions that would allow a program to succeed. The transitional government talks of being a “kamikaze government”, taking tough and unpopular measures, but that could put extraordinary stress on an already fragile coalition. To try and rush a program would be a mistake, as it would likely be underfunded and subject to conditions the current government cannot or will not stick to. Meanwhile, the central bank continues to lose reserves (and we don’t know how much of what is left is liquid), the government is having trouble providing basic services, and the banking system is broken."
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