Now that the IMF may be having second thoughts about transferring additional monies to Ukraine to prop up the failing economy, the politicos are saying they really don’t need the money after all. The IMF was obviously concerned that the money would be wasted given the lack of reforms and the “buy the vote” legislation being pushed through before upcoming elections in Janauary.

The IMF must also be concerned about the potential for fraud given the billion dollar embezzlement that occurred after the last tranche was transferred.

The real question is what will happen if the IMF funds are not injected into the economy here. We are following this closely and expect the Ukrainian currency to reflect this.