My Ukrainian serfs shall not escape the Manor! I own them now.
Posted on 12/09/2015 6:59:18 AM PST by Freelance Warrior
Today the Executive Board of the IMF reversed its "policy on not lending into arrears." IMF spokesman Gerry Rice said in a statement that “the IMF’s executive board met today and agreed to change the current policy on non-toleration of arrears to official creditors."
Historically, the IMF has refused to lend to any country that has not serviced its debt to any sovereign. The IMF staff started contemplating a rule change in the spring of 2013 because nontraditional creditors, such as China, had started providing developing countries with large loans.
The IMF intended to adopt a new policy in the spring of 2016, but the dispute over Russia's $3 billion loan to Ukraine has accelerated an otherwise slow decision-making process.
Russia's loan to Ukraine on December 20, 2013 [...] was a Eurobond that could be traded and thus private in its form and not an official loan. Eventually, the IMF staff judged it to be an official loan.
The IMF policy of not lending into arrears is not written into the IMF statues that is, its Articles of Agreement. It is simply a policy that the IMF Executive Board can alter with a simple majority. After the vote, the IMF can continue to give Ukraine loans regardless of what Ukraine does about its credit from Russia, which falls due on December 20.
The IMF's policy change does not mean that Ukraine will get more IMF funding now. The IMF mission to Ukraine in both September and November came back to Washington without result. [...] Vice President Joe Biden has just spoken in Kyiv "about the vital importance of Ukraine following through on its IMF commitments,"
(Excerpt) Read more at ocnus.net ...
Boy, they sure fooled Putin!
More debt for the Ukranians! More assets for the Davoisie! What’s the cut for the Clinton Global Initiative? How much is Goldman Sachs getting?
Everything is proceeding according to plan.
Changing the rules and applying them in an ad-hoc way is called cheating where I come from.
Just 10 days before the Ukrainian deadline. Well, when default countries flock to the IMF demanding loans, we'll see if that's all about Ukraine.
My Ukrainian serfs shall not escape the Manor! I own them now.
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