Ukrainian President: Enormous IMF Loan Won’t Help Ordinary Ukrainians

‘Ukrainian President Petro Poroshenko has admitted that a new $17.5 billion loan from the International Monetary Fund and its associated austerity measures will not improve the lives of ordinary Ukrainians—but will help pay foreign creditors and fund the country’s ongoing civil war.

“Life won’t improve shortly,” Poroshenko said in televised comments on March 10, one day before the IMF approved the loan. “If someone understands the reforms as improvement of people’s living, this is a mistake.”

One reason for the cooled expectations is what he called the “tough wartime conditions.” He also announced a fourfold increase in defense spending, a boost that according to Business New Europe, “will inevitably impact already limited means for social welfare and pensions.”’

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