The International Monetary Fund (IMF) is scheduled to hold a meeting towards the end of November to review its “lending-into-arrears” policy. [1] This has important geopolitical implications for the ongoing Ukraine-Russia debt negotiations—Russia has given a $3 billion Russian loan to Ukraine, which will mature in December 2015. [2]
The IMF’s policy on sovereign arrears stipulates that the institution cannot lend to a country that has defaulted on a loan from a government—and it is this policy that will influence the trajectory of the Ukraine-Russia negotiations. [3]
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