Your link says;
the IMF approved a $17 billion loan program to Ukraine’s junta. Normal IMF
practice is to lend only up to twice a country’s quote in one year. This was
eight times as high.
Did he mean quota? How is the quota determined?
Blog: http://kenthink7.blogspot.com/index.html
Blog: http://kencan7.blogspot.com/index.html
On Wednesday, September 10, 2014 5:02 PM, Marv Gandall <[email protected]>
wrote:
Below, a link to probing article from the economist Michael Hudson on the $17
billion IMF loan to Ukraine as an instrument of US/EU policy. The loan is eight
times the normal IMF quota, the first ever to a warring side in a civil war,
and in violation of an IMF statute prohibiting loans to countries whose ability
to repay is doubtful.
Hudson claims the loan has had a dual purpose: (1) to temporarily prop up the
collapsing Ukrainian hryvnia, allowing the country’s oligarchs to convert their
holdings to euros and dollars before the currency plunged further and (2) to
support the military buildup and assault against the Russian-speaking eastern
regions. Little or nothing is slated to be directed towards reconstruction of
the east’s shattered infrastructure and flattened homes, schools, hospitals,
and factories.
The only conceivable way Ukraine will be able to repay the loan will be to sell
off its gas reserves and farmland to Western interests, but Russia has a strong
legal claim on the amount for gas arrears and future deliveries as winter
nears. US and British politicians and policymakers are trying to devise ways to
declare Ukraine’s prior obligations to Russia as “odious debt” but, as Hudson
notes, the precedent could render vulnerable their own intergovernmental loans,
typically extended for military or political purposes.
Hudson is a former Wall Street analyst who now teaches at the University of
Missouri in St. Louis.
http://michael-hudson.com/2014/09/losing-credibility-the-imfs-new-cold-war-loan-to-ukraine/
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