Tag: financial aid
Talk Of Financial Aid For Ukraine Gains Traction

Talk Of Financial Aid For Ukraine Gains Traction

By Paul Richter and Kathleen Hennessey, Tribune Washington Bureau

WASHINGTON — Russia’s military action in Crimea has strengthened support for economic aid to beleaguered Ukraine, yet the multibillion-dollar package under discussion in world capitals still must navigate a treacherous course.

With Russian troops now essentially in control of Ukraine’s Crimean peninsula, President Barack Obama challenged lawmakers who have been demanding tough action to start with an aid package to help shore up the fledgling government in Kiev, the Ukrainian capital.

Obama said Monday that he had heard “a lot of talk from Congress about what should be done.” He said the first order of business should be assistance “that stands above partisan politics.”

Treasury Secretary Jack Lew said Sunday that the Obama administration would work with other governments to provide “all the assistance Ukraine needs,” and the Group of 7 leading industrialized nations committed itself to “strong financial backing.”

How much money Ukraine needs to keep its economy from collapse is in some dispute, but by most reckonings the figure is huge.

Steven Pifer, a former U.S. ambassador to Ukraine now at the nonpartisan Brookings Institution, said a financial bailout for Ukraine’s obligations could require $15 billion to $20 billion this year and as much as $15 billion next year.

By comparison, U.S. economic aid to all countries totaled $31 billion last year.

Secretary of State John F. Kerry last week said the Obama administration was contemplating an immediate $1 billion loan guarantee, possibly joined by an undisclosed amount in direct aid, to help Ukraine meet its obligations. Europe was considering about $1 billion, he said.

Senior lawmakers indicated they were willing to listen. House Majority Leader Eric Cantor (R-VA) and Sen. Robert Menendez (D-NJ), chairman of the Senate Foreign Relations Committee, say they are ready to consider aid, although it’s not clear if they agree on the details in an era of budget cuts.

Menendez said Monday that lawmakers were working on legislation to fund the $1 billion loan guarantee as well as help with energy reforms, elections, strengthening of civil society, anti-corruption efforts and the recovery of stolen assets.

Cantor suggested a more limited scope, saying the House was considering loan guarantees but with a caveat. “We must make sure it is done responsibly and any legislation is not delayed by adding divisive provisions,” he said.

The State Department is to present a legislative request for a loan guarantee to the House Foreign Affairs Committee on Tuesday, according to a committee aide. Officials appear to be seeking a path that might avoid confrontation with budget hawks who could hold up a costly aid package.

A senior congressional aide said discussions had focused on using $200 million that has already been appropriated for the State Department to pay for the loan guarantee.

But the aide, who said Kerry went “a lot over his skis” in his initial promise of aid, said there had been no decisions on further assistance. The aide spoke on condition of anonymity in describing sensitive discussions.

Administration officials are trying to make the case that providing aid to Ukraine doesn’t mean carrying an indefinite financial burden. Though it has developed a reputation for widespread corruption in the post-Soviet era, Ukraine is potentially wealthy with natural resources, agriculture and industry, they say.

“This is a short-term problem that results from the gross mismanagement and corruption and ripping off of the Ukrainian economy of the previous regime,” a senior administration official told reporters in a conference call Sunday, speaking on condition of anonymity.

Most of the money required for Ukraine’s bailout would come from the International Monetary Fund. Its officials tried to support the former government in Kiev for years but were deeply frustrated as Ukraine refused to reform its finances and repeatedly defaulted on obligations.

The transitional government that took over last month after President Viktor Yanukovich fled the country is pledging to take austerity steps right away. The steps could include raising prices for natural gas, which have been held artificially low, removing any incentive for business to develop Ukraine’s gas resources.

Raising prices is likely to generate a strong public backlash, however. Arseny Yatsenyuk, the acting prime minister, has referred to the current leadership team as a “kamikaze” Cabinet because he fears it will be thrown out because of resistance to government belt-tightening.

The IMF, which sent a team to Ukraine on Monday for a 10-day visit, has indicated it would like to delay a long-term deal with Ukraine until after the May 25 presidential election. Fund officials don’t like to negotiate deals with transitional governments that may soon be gone.

The government says it is willing to agree to the austerity steps right away, to open the way for the IMF to offer an infusion of about $1.4 billion, probably coupled with a similar amount from the European Union.

It’s not clear, however, if European countries will chip in directly to supplement the IMF contributions.

The French have been unenthusiastic, and German officials, who are already bankrolling other teetering European economies, have stressed that the solution to the crisis must lie in Ukrainian austerity rather than checks from abroad.

Anders Aslund, a Swedish economist who has studied Ukraine, said he expected that the Northern European nations, including Germany, the Netherlands and the Scandinavian countries, would chip in.

“They will be under huge pressure from Central European countries,” said Aslund, a senior fellow at the nonpartisan Peterson Institute for International Economics in Washington. “If Ukraine goes under, the Russians will be able to walk in and take over.”

Photo: Olivier Douliery/Abaca Press/MCT

Washington State House Passes Senate Measure For Financial Aid Eligibility For Undocumented Children

Washington State House Passes Senate Measure For Financial Aid Eligibility For Undocumented Children

By Andrew Garber, The Seattle Times

OLYMPIA, Washington — Washington state lawmakers found something they could agree on Tuesday — allowing students brought here illegally as children to be eligible for financial aid.

The House voted 75-22 to pass Senate Bill 6523 and send it to the governor, who has said he supports the legislation. The measure was approved by the Senate last month.

“I absolutely believe that this bill is as good for my community as it is for yours,” said Rep. Bruce Chandler (R-Granger Yakima County). “As we go into the future, every one of us, all of our families, all of our neighbors are going to have to be pulling the wagon together.”

Rep. Sharon Tomiko Santos (D-Seattle) said the students who will benefit from the financial aid “have already proven their mettle. They have shown resilience, they have shown the willingness to work hard . . . . Our job is to make sure they have a fair chance to walk through that door and realize their dreams.”

It is the first law to pass the Legislature so far this year. Several hundred other bills are waiting in the wings, but it’s anybody’s guess how many of those will reach Governor Jay Inslee before the session ends March 13.

Senate Republicans and House Democrats don’t agree on much. That was true for this legislation as well, with the GOP-led caucus in the Senate arguing lawmakers had more important priorities to tackle.

But the Senate majority caucus shifted gears last month and backed the measure, which advocates have been trying to pass for years.

GOP lawmakers said they wanted to make sure funding was available before endorsing the legislation. The measure includes a $5 million appropriation.

About 74,000 students receive State Need Grants, and an additional 32,000 eligible students were turned away last year because of a lack of funding. It’s not clear how many more students would become eligible under this bill.

Under the legislation, students are eligible for financial aid if they have been granted Deferred Action for Childhood Arrival (DACA) status and meet other conditions such as getting a high-school diploma in Washington and living in the state for at least three years before getting a diploma or its equivalent.

Ricardo Sanchez, founder of the Latino/a Educational Achievement Project, said in a statement that the legislation sends an encouraging message to students who have too often told themselves “college is for the rich kids, and it’s out of bounds for me because I’m an illegal alien.”

“The Real Hope Act changes this narrative to one that says, ‘If I work hard, I can get an education and be anything I want to be,’ ” he said.

Photo: Anuska Sampedro via Flickr

U.S. In ‘Preliminary’ Talks With EU For Ukraine Aid Deal

U.S. In ‘Preliminary’ Talks With EU For Ukraine Aid Deal

Washington (AFP) – The United States is holding talks with the European Union on drawing up a financial aid package for Ukraine amid weeks of political upheaval, a U.S. official confirmed Monday.

“Let me be clear, this is at a very preliminary stage. We are consulting with the EU… and other partners about the support Ukraine may need after a new technical government is formed as the country gets back on the path to economic health through the IMF,” State Department spokeswoman Jen Psaki told reporters. “Any decisions we make will be guided by events in Ukraine and our consultations with the new government after it is formed.”

But Psaki said no further details were available yet as Washington was so far only in discussions.

The confirmation came after EU foreign policy Cathy Ashton told the Wall Street Journal that the EU and U.S. were working together on a financial aid package.

Ashton is due to return to Ukraine on Tuesday in a fresh bid to end the crisis triggered after President Viktor Yanukovych abandoned a plan to sign an association deal with the EU.

U.S. Assistant Secretary Victoria Nuland is also returning to Kiev this week, in a new sign of U.S. support for the pro-democracy demonstrators.

AFP Photo/Angelos Tzortzinis