IMF Managing Director Christine Lagarde has finally put to rest the role of the IMF…it’s all about politics.
In a nutshell, the IMF is ready to continue providing financial aid to Kiev, even if Ukraine defaults.
And so, in order to “save” Ukraine from complete neo-nazi meltdown, the IMF is willing to sacrifice itself by lending, not only to a country engulfed in a civil war, but to a bankrupt state that has recently blackmailed creditors with a moratorium on debt repayment.
This political move by the IMF will be the end of its financial standing in the world. Make room for the BRICS Development Bank and the AIIB.
The IMF open letter…
“The IMF, in general, encourages voluntary pre-emptive agreements in debt restructurings, but in the event that a negotiated settlement with private creditors is not reached and the country determines that it cannot service its debt, the Fund can lend to Ukraine consistent with its Lending-into-Arrears Policy.”
Does the same apply to Greece we wonder?
Via Sputnik News Agency…
IMF launched a four-year loan program of $17.5 billion for Ukraine’s government in March. According to Lagarde, Kiev is determined to tackle economic imbalances in Ukraine and is set on achieving sustainable growth, which warrants the support of the international community.
The IMF managing director met with Ukrainian Prime Minister Arseniy Yatsenyuk and the country’s Finance Minister Natalia Jaresko on Wednesday.
Following the meeting, Yatsenyuk stressed that Ukraine’s debt to private creditors must be restructured and expressed hope that 2016 would be the first year of economic growth in the country.
“Rapid completion of the debt operation with high participation is vital for the success of the program, since Ukraine lacks the resources under the program to fully service its debts on the original terms.”
Jaresko, who has been seeking a write down of Ukraine’s debt, said that Kiev would have to impose a moratorium on certain debt repayments if an agreement with private creditors is not reached during the summer of 2015.