The IMF forced the Ukrainian government to cancel a $450 million deal with Merrill Lynch under which the bank agreed to buy hryvnya-denominated treasury bills on condition that they were indexed against the dollar. Such an arrangement would have insulated the bank from any possible devaluation of the hryvnya, but would have exacerbated the impact on the Ukrainian government of any future financial crisis. Last week the IMF released $100 million of its stand-by loan to Ukraine. (Financial Times, 5 December)
Russia Promises Georgia to Return Border Post to Original Location.