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I don't know much about the Ukrainian IMF saga. I do know that Ukraine turned down the IMF earlier this year (or was it last year?) and has signed a modified deal.

Anyone know why they broke off? Did they get a better deal because of that? What pressure did they have?

http://www.businessweek.com/news/2010-07-03/ukraine-agrees-new-14-9-billion-imf-loan-arrangement.html

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I don't know much about the Ukrainian IMF saga. I do know that Ukraine turned down the IMF earlier this year (or was it last year?) and has signed a modified deal.

Anyone know why they broke off? Did they get a better deal because of that? What pressure did they have?

http://www.businessweek.com/news/2010-07-03/ukraine-agrees-new-14-9-billion-imf-loan-arrangement.html

There are probably several reasons why they negotiated, from the amount, to the rate, to the conditionality of the loan - countries always negotiate as best they can. When a country has difficult negotiations with the IMF, it is usually the case that both sides have issues with the positions on the table.

However, the main things that drove the shift in the negotiating positions were the improvement in the global economy, which meant that Ukraine was able to stabilise its economy to a degree, and the involvement of the Russians, who are the other major providers of capital to Ukraine outside the 'Western'/Global IFIs.

Specifically, Russia agreed a gas price discount for Ukraine, which reduced the deficit at the state gas company (which was a substantial portion of the government's deficit), and the country was also able to raise some debt on the international markets (VAT bonds).

But it's a bit of a chicken and egg point to ask whether it was these points that led to a better IMF deal, or that the likelihood of an IMF deal means that the company was better able to negotiate terms because that meant it had better chance of attracting capital elsewhere. And getting a better IMF deal might sound good, but compared to economic meltdown anything would be better than nothing!

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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