Western nations scramble to contain fallout of Ukraine crisis

[dipsydoodle]

11. The IMF had already been asked for help.

From last year :

IMF LOAN TALKS ON HOLD

Much of the debt is denominated in dollars but must be financed using the local hryvnia currency, which is at a four-year low against the dollar and forecast to lose a further 9 percent in the next six months.

Without international aid, investors fear Ukraine will struggle to repay $7 billion of hard currency debt falling due next year, while it is also dealing with a balance of payments deficit and unpaid gas bills from Russia.

In its efforts to find a solution to the rapidly escalating crisis, the EU has also explored whether it could bring forward financing that would have gone to Ukraine over the coming seven years as part of its association agreement.

Any advances would only happen if Ukraine signs the deal, and the current amount available - the 610 million euros - is in any case conditional on Ukraine securing an IMF agreement.

The IMF wants Ukraine to introduce more exchange rate flexibility - effectively allowing the currency to devalue - and remove subsidies from domestic gas supplies, but Kiev has refused.

http://www.reuters.com/article/2013/12/11/eu-ukraine-idUSL6N0JQ26X20131211

After that the December talks EU / Ukraine talks occurred and the EU actually offered $1 billion which Ukraine refused as not making economic sense.

Ukraine could make Greece and Spain look like picnics on a sunny afternoon.

Later news here : Ukraine hoping for $35 billion in financial assistance

http://www.democraticunderground.com/1014736834