Article Essay
BUS580 Article Review
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IMF throws Ukraine $27-billion lifeline as third recession in 6 years looms
The article that was published in financial post portrays the money crisis Ukraine is going through, where the country is caught up in international debts. Ukraine government owns Washington lenders a loan of US$14 billion, 1.6 billion Euros to European Union and US$3 billion to the Russian government. These debts have weakened international business with majority of countries as they claim the country is in the verge of bankruptcy and thus they could not involve themselves in business links unless the debts are paid. The situation has affected the International Monetary fund to intervene and try to help the country.
The Ukraine government money crisis should be a matter that should be well observed by the economists and budget planners before the situation gets worse. For instance, Ukraine relies on Russia for the supply of gas and this means with an outstanding debt not paid the Russian government would automatically cut the supply, thus putting its citizen in problem. There is already a threat to cut down the supply of gas by one third followed by withdrawal of discount offered by Russian to Ukraine (Krasnolutska & Marchak, 2014).
To resolve this crisis it would only be advisable to ask for more help. With most of the aid countries claiming more from the Ukraine government, the country would be left with few options. The Monetary Fund being one of the option, which so fall sounds like sigh since they have already signed an agreement where it will clear the 1.6 billion Euros payment to the European Union. On top of that, United States of America has guaranteed them US$150 billion which would only be direct aid. The money would at least show international support and a chance for Ukraine to maintain relation with allies’ countries. The other option would be for the government to impose income tax to
Name
Instructor
Date
IMF throws Ukraine $27-billion lifeline as third recession in 6 years looms
The article that was published in financial post portrays the money crisis Ukraine is going through, where the country is caught up in international debts. Ukraine government owns Washington lenders a loan of US$14 billion, 1.6 billion Euros to European Union and US$3 billion to the Russian government. These debts have weakened international business with majority of countries as they claim the country is in the verge of bankruptcy and thus they could not involve themselves in business links unless the debts are paid. The situation has affected the International Monetary fund to intervene and try to help the country.
The Ukraine government money crisis should be a matter that should be well observed by the economists and budget planners before the situation gets worse. For instance, Ukraine relies on Russia for the supply of gas and this means with an outstanding debt not paid the Russian government would automatically cut the supply, thus putting its citizen in problem. There is already a threat to cut down the supply of gas by one third followed by withdrawal of discount offered by Russian to Ukraine (Krasnolutska & Marchak, 2014).
To resolve this crisis it would only be advisable to ask for more help. With most of the aid countries claiming more from the Ukraine government, the country would be left with few options. The Monetary Fund being one of the option, which so fall sounds like sigh since they have already signed an agreement where it will clear the 1.6 billion Euros payment to the European Union. On top of that, United States of America has guaranteed them US$150 billion which would only be direct aid. The money would at least show international support and a chance for Ukraine to maintain relation with allies’ countries. The other option would be for the government to impose income tax to
References: Krasnolutska, D., & Marchak, D. (2014, March Thursday). IMF throws Ukraine $27-billion lifeline as third recession in 6 years looms. Retrieved March Thursday, 2014, from Financial Post: http://business.financialpost.com/2014/03/27/imf-throws-ukraine-27-billion-lifeline-as-third-recession-in-6-years-looms/ Sabramanian, K. (2014). Seidman Business Review. Retrieved March Thursday, 2014, from Managing International Strategic Alliance: Lesson from the trenches : http://scholarworks.gvsu.edu/cgi/viewcontent.cgi?article=1118&context=sbr The Hindu. (2014, February Friday). The Hindu. Retrieved March Thursday, 2014, from Sibal calls for national trade policy for retailers: http://www.thehindu.com/business/sibal-calls-for-national-trade-policy-for-retailers/article5736879.ece