IMF changes rule on debt as Ukraine faces Russia deadline

Until now, the IMF could not provide financing to a member country that was in arrears to an official creditor, such as a governmentThe International Monetary Fund on Tuesday changed a rule that would have blocked its financial aid program to Ukraine in the event the country defaulted on debt owed to Russia. The move — which drew an angry response from Moscow — comes as cash-short Ukraine faces a looming year-end deadline to repay Russia for a $3 billion loan. The rule was particularly problematic in the case of Ukraine, which received a $17.5 billion financial rescue from the IMF in March.

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