IMF Bailout Fatigue Among Republicans Delays Ukraine Aid
President Barack Obamas plans to confront Russian aggression and aid Ukraine are complicated by a domestic roadblock: House Republicans wary of bailouts and suspicious of empowering the International Monetary Fund.
House Speaker John Boehner and other congressional Republicans say the increased IMF money isnt necessary to help Ukraine. Instead, they say the White House is using the aid measure to persuade Congress to make changes to the IMF that have stalled since Republicans took the House majority in 2011.
At a time of massive deficits, we have a problem with expenditure of these funds -- and increasing them, Representative Patrick McHenry, a member of the Financial Services panel, said in an interview at the Capitol last week.
Its not a new issue for Republicans, said McHenry of North Carolina. On foreign aid and bailouts, conservative aversion is well known.
IMF funding is delaying a U.S. aid package to Ukraine that, tied with sanctions for Russian companies, senior Russian and pro-Russia Ukrainan officials, was intended to act as a deterrent to Russian President Vladimir Putin.
Since Congress started debating the aid plan, Russian troops have pressed into parts of Crimea, the region voted to secede from Ukraine, and Russia annexed it -- all steps U.S. leaders said are illegal or illegitimate.
The U.S. contributed a $100 billion credit line in 2009 to an emergency pool of money intended to boost the IMF war chest during the global recession. The proposal would transfer about $63 billion from that pool into the funds permanent resources to boost the U.S. share at the fund, or quota, and implement a 2010 international agreement.
The Senate plans to hold a procedural vote March 24 on Ukraine aid legislation, S. 2124, that includes the IMF funding. The bill also would authorize $1 billion in loan guarantees and sanctions against Ukrainians and Russians deemed responsible for corruption and violence.
The House passed its Ukraine aid plan March 6 with $1 billion in loan guarantees to the fledgling Ukraine government. The measure, H.R 4152, didnt include the IMF funding.
I strongly oppose having that provision in there, said Representative John Campbell, chairman of the House Financial Services subcommittee that oversees the IMF. What the administration is saying about it is absolutely, patently false. This is the problem with this administration, they cant be straight with you.
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