By Matthew Russell Lee
UNITED NATIONS, March 27 -- It was 4:25 am in New York and Washington when the International Monetary Fund announced its preliminary agreement for a $14 - $18 billion loan program with Ukraine.
Inner City Press asked the IMF to confirm or comment on reports that the Ukrainian "increase the price of natural gas for household consumers by an average of 50%" is attributable to the IMF.
At the IMF's 9:30 am embargoed briefing, IMF deputy spokesperson William Murray read out the question then said that the program has five components, including energy sector reform.
He said Ukraine will reduce subsidies to the energy sector, and that current prices in Ukraine are two to three times lower than in neighboring countries. He said, as it did to other questions, that responses were given in a press conference in Kyiv.
In New York at the UN, a General Assembly meeting started at 10 am. Russia's Ambassador Vitaly Churkin recounted history and said radicals "called the shots" in the change of government. We've noted that UN Secretary General Ban Ki-moon met with the leader of the Svoboda party while in Kyiv.
In Washington later on March 27 the US Congress is expected to act on a $1 billion loan guarantee to Ukraine, but not on the IMF changes the Obama administration requested. Obama Press Secretary Jay Carney issued a statement welcoming the IMF preliminary deal, concluding that "We also remain committed to providing the IMF with the resources it needs – in partnership with Congress – to provide strong support to countries like Ukraine as well as reinforcing the Fund’s governance to reflect the global economy."
Two weeks ago on March 13, the day after several US Senators argued that International Monetary Fund quota reform would have to be approved by Congress to enable the IMF to meaningfully assist Ukraine, Inner City Press asked IMF spokesperson Gerry Rice if this is true. Video here, from Minute 12:05.
Two weeks ago on March 13, the day after several US Senators argued that International Monetary Fund quota reform would have to be approved by Congress to enable the IMF to meaningfully assist Ukraine, Inner City Press asked IMF spokesperson Gerry Rice if this is true. Video here, from Minute 12:05.
Rice genially said several times that the question couldn't or wouldn't be answered while the IMF mission is “in the field” in Ukraine. He initially gave the same answer to Inner City Press' question that had nothing to do with Ukraine: is it true, as Russia reportedly argued at the most recent G-20 meeting, that quota reform could be accomplished without US approval, under some set of rule changes?
Rice during the briefing repeated this could not be answered while the mission is in Ukraine. Later it was conveyed that the reform is not possible without US approval. The answer is appreciated: a benefit of asking in person. But Inner City Press (and the Free UN Coalition for Access) hope to make the online asking of questions work better from now on.
And on March 27, for example, IMF deputy spokesperson William Murray read out this question from Inner City Press:
"On Zimbabwe, please confirm IMF is re-opening its office and respond to Finance Minister Patrick Chinamasa saying part of the deal included cutting Zimbabwe's wage bill from 70 percent of the budget but this pledge will not be met, 'addressing it overnight would mean very drastic measures which I indicated to them (IMF) I am not prepared to take. That would mean retrenchment of civil servants.'"
On March 27, Murray said he would not comment directly on what the Finance Minister said, but pointed to a press release we will add a link to.
Back on March 13 in another non-Ukraine question, Inner City Press asked Rice about a book published earlier this week in Hungary, that the then-economy minister in 2011 told Goldman Sachs that the government would be going to the IMF for a program. Since much currency trading ensued, Inner City Press asked if the IMF has any rules limiting its government interlocutors from trading on or sharing insider information.Video here, from Minute 31:12.
Rice said there are confidential provisions. But are those only for the contents of communication and not the existence of communications or negotiations? We'll see.
