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Economic Crisis in Ukraine
Topic Started: Mar 5 2014, 03:07 PM (388 Views)
Vonar Roberts

Zhou Xiaochuan
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Governor of the People's Bank of China

Ladies and Gentlemen,
Ukraine is on the brink of defaulting on its debts and needs about $35 billion US over the next two years to stay solvent, according to Ukraine's own interim finance minister. With the $15 billion Russia promised the country under Yanukovych's regime now off the table, Ukraine needs to secure a debt restructuring agreement and refinancing in short order in order to cover its international commitments.

The People's Republic of China would like to open the debate on what measures the International Monetary Fund can to do to prevent a Ukrainian default.
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Jos1311
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Posted Image Steffen Kongstad
Ambassadør og faste representant til FN og andre internasjonale organisasjoner i Genève | Ambassador and Permanent Representative to the United Nations and other international organisations in Geneva

Esteemed delegates,

Recent reports have suggested that for this year alone Ukraine has a requirement for US$35bn, with an additional requirement of US$10bn for 2016. These costs will enable Kiev to finance its large current-account deficit and to meet foreign creditors, and prevent an immediate default of the country. Additional funding will be required to reform the countries government, and various other matters, so the entire bill to economically stabilize Ukraine will be well in excess of US$50bn for the next two years.

Norway has been involved in bilateral talks and is willing to provide assistance to Kiev, but has requested assurances. Among these assurances is the demand that the Norwegian assistance will be part of a broader international package for Kiev. As without any broader package the financial situation in Ukraine is such that a default is impossible to prevent.

Recently IMF Spokesperson Gerry Rice has confirmed that the IMF is willing to provide Ukraine with a loan the size of US$15bn, with the Norwegian contribution that still leaves a requirement for some US$30bn over the next two years. We have heard, by mouth of mister Xiaochuan, that China is willing to provide assistance to Kiev as well, mostly in the form of debt restructuring and new loans. While we stand positive towards the debt restructuring on the long term, as this could save Ukraine considerable amounts of money, we are also aware that debt restructuring and new loans alone will not solve the situation. As a result of this we call upon the international community to understand the severity of the situation in Ukraine and step up to the plate to provide the necessary assistance.

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C.E
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Posted Image Jacob Lew | 76th United States Secretary of the Treasury


The United States would support IMF loan of up to $ 20 bn and that steps to secure these loans is immidiately undertaken. That said, Ukraine must come forth with a plan for economic recovery and said plan, must be presented here.

The United States will further provide loan guarantees on bilateral basis to Ukraine and calls for the members of the European Union to take similar steps.
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Redbirdfan
Bundesrepublik Deutschland
Stepan Kubiv
Governor of the National Bank of Ukraine

Ukraine is in depurate need of these funds and has agreed to do any and all necessary measures to ensure the viability of such a loan is given to Kyiv.
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Jos1311
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The IMF has approved a US$15 billion loan to Ukraine. I would have liked to have seen more debate on this matter in these chambers, as obviously that should have happened by now. The loan will be provided in batches, with the first being issued as soon as possible. Note that it still is insufficient to prevent a collapse of the Ukrainian economy and I expect that countries will now finally start addressing the economic side of the crisis.
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