Aid to Ukraine Should Not Be Held Hostage by IMF Politics
The Obama Administration is insisting that before Congress can support courageous, Westward-looking Ukrainians, it must first reduce the power of the United States at the International Monetary Fund (IMF). The White House wants Congress to attach its approval of an IMF governance “reform package” that has been pending for three years to any legislation providing urgently needed U.S. financial assistance to Ukraine. As Heritage reported in January, there are significant “moral hazard” issues in the 2010 IMF reform package that must be considered on their own merits. Decisions about the reform package should not be taken in the crisis atmosphere surrounding the situation in Ukraine. Congress should insist that the Obama Administration remove the unnecessary linkage between adoption of urgently needed IMF assistance to Ukraine and the larger questions raised by the IMF reform package.