Home Economy Inside VP Biden’s linking of a loan to a Ukraine prosecutor’s ouster

Inside VP Biden’s linking of a loan to a Ukraine prosecutor’s ouster

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, much of the media described it simply as a condition for aid. This however, is inaccurate and understates the degree of influence the Obama administration was exerting on the Ukrainian government. In reality, the Obama administration was threatening to withhold loan guarantees to Ukraine unless the prosecutor was fired. Loan guarantees are more expansive and have a larger financial impact than simple aid – they provide Ukraine with much needed help in increasing foreign capital investment, and in improving their economy. In pressuring the Ukrainian government, the Obama administration was attempting to influence reform in the Ukrainian government, and in particular getting rid of the prosecutor who was accused of involvement in corruption.

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