As Ukraine Sinks Below ‘Life Support,’ the West Gropes for Loan Money

As Ukraine Sinks Below ‘Life Support,’ the West Gropes for Loan Money:



"Ukraine’s finances are now “beyond life support,” says economist Tim Ash as its foreign reserves plunged to $7.5 billion last month, less than half of what the International Monetary Fund considers critical to a country’s financial health. The economy shriveled by 7.5 percent last year, electricity production is down in mid-winter, and the country needs immediate help to avoid an economic implosion. 





Amid this, Ukrainians might be forgiven for thinking that their international allies seem to be standing with their eyes just slightly averted, patting their pockets distractedly as though in search of their misplaced wallets.



Economists such as Ash, a chief analyst in London for Standard Bank, say the slow pace with which the transatlantic community and the International Monetary Fund are working to gather a minimal new loan package for Ukraine is leading investors to pull capital out of the country. Ash this week echoed billionaire George Soros in urging the West to move faster and bigger in finding new loans: at least the $15 billion that economists say is a minimum to help the country’s transition to a more open economy and a cleaner system of government."



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