In a year, Ukraine to be rocked by IMF loan embezzlement scandals, Vydrin warns

November07200820:35

The IMF cannot suspend its loan to Ukraine as the decision on the first tranche has been made. The IMF did not condition its loan on holding snap elections in Ukraine, Kyiv-based political expert Dmytro Vydrin Told ZIK Nov. 7.

“Premier Tymoshenko erroneously thinks the loan is conditioned by holding snap elections in Ukraine,” Vydrin says.

He says Ukraine should not have asked for the loan, as the IMF grants loans on certain conditions. Its first condition is that Ukraine must have a viable and effective parliament, as only the legislature can exercise strict control over the loan spending.

“Second, the IMF grants credits only to countries with a unified and coherent development strategy drawn up by major political parties. Since the president and premier have different strategies of economic development, it is a suicide to ask for the IMF loan. It cannot be consolidated as a road map,” Vydrin claims.

These two factors indicate, Vydrin continues, that the loan won’t strengthen the Ukrainian economy. Instead, it will provide a feeding trough for corrupt officials:”Within a year, we will see huge embezzlement scandals.”