[Marxism] Meet the new IMF, same as the old IMF

[S. Artesian]

WSJ.com

By ALAN CULLISON
The International Monetary Fund is likely to suspend loan payments to 
Ukraine, a move that would further push the government toward Moscow for aid 
and exacerbate a feud between top leaders in Kiev.
Ukraine is failing to meet the terms of its loan deal with the IMF, and 
likely won't get the next installment this month, according to a person 
close to talks between the fund and the government in Kiev.

Faced with a cash shortage, Kiev is passing the hat around to global powers. 
Talks were held in Moscow last week over a $5 billion loan to help plug 
Ukraine's budget deficit.
Ukraine Prime Minister Yulia Tymoshenko said her government also sent 
letters to the U.S., European Union, China and Japan, and that "Russia is 
ready to help with the credit agreement's signing."
President Viktor Yushchenko criticized the talks with Moscow. "It's a 
dangerous policy and poses a threat to Ukraine's national interests," he 
said.
The U.S. State Department said it was looking into reports of Ukraine's 
request for aid.
Ukraine has been hit by falling prices of metals and fertilizers, its main 
exports. Infighting between Mr. Yushchenko and Ms. Tymoshenko has led to a 
policy deadlock.

The deficit has been a sticking point in talks with the IMF on the release 
of the second installment of a $16.4 billion loan that it agreed to extend 
to Ukraine last year. The IMF released the first $4.5 billion tranche in 
November and had made further disbursements contingent on Ukraine reducing 
the budget shortfall and making progress on bank restructuring.
Ms. Tymoshenko's government's 2009 budget is forecast to show a deficit of 
3% of gross domestic product.
Last week, an IMF mission monitoring Kiev's progress left without an 
agreement with the government that would have paved the way for disbursing 
the next loan tranche. Ceyla Pazarbasioglu, assistant director of the 
European Department of the IMF, said "further actions, including structural 
fiscal measures, are needed for us to recommend completion of the review."
-James Marson and Louise Radnofsky contributed to this article.