Ukraine Mulls Contingency Plan to Keep IMF Funds Flowing If US Aid Stalls
- US failure to approve Ukraine aid raises risks for IMF lending
- Possible measures include expanding bond sales, tax hikes
Ukrainian artillery in Donetsk region, Ukraine.
Photographer: Ihor Tkachov/AFP/Getty ImagesThis article is for subscribers only.
Ukraine is considering a plan — including expanded domestic bond sales, tax hikes and spending cuts — to plug a hole in its budget in a bid to secure money from the International Monetary Fund if crucial US aid remains blocked.
Ukrainian officials intend to propose the plan to the IMF during a staff visit to Kyiv next week, according to people familiar with the matter, who asked not to be identified discussing private deliberations. The measures are needed to assure the IMF that Ukraine can service its debts in case allies fail to provide aid, a condition for its $15.6 billion loan program.