{"id":9288,"date":"2015-06-21T07:19:29","date_gmt":"2015-06-21T12:19:29","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9288"},"modified":"2015-06-21T07:19:29","modified_gmt":"2015-06-21T12:19:29","slug":"imf-violates-imf-rules-to-continue-ukraine-bailouts","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9288","title":{"rendered":"IMF Violates IMF Rules, to Continue Ukraine Bailouts"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/www.washingtonsblog.com\/2015\/06\/imf-violates-imf-rules-to-continue-ukraine-bailouts.html\" target=\"_blank\">IMF Violates IMF Rules, to Continue Ukraine Bailouts<\/a><\/h3>\n<p class=\"p1\"><span class=\"s1\">The IMF, whose bailout operations are absorbed by the taxpayers in the member countries whenever a particular bailed-out nation defaults,\u00a0<a title=\"announced on Friday,\" href=\"http:\/\/www.reuters.com\/article\/2015\/06\/19\/ukraine-crisis-debt-imf-idUSW1N0XB00720150619\" target=\"_blank\"><span class=\"s2\">announced on Friday,<\/span><\/a>\u00a0June 19th, that it will \u201ccontinue to support Ukraine through its Lending-into-Arrears Policy even in the event that a negotiated agreement with creditors in line with the program cannot be\u00a0reached in a timely manner.\u201d Though this new \u201cLending-into-Arrears\u201d policy violates two IMF rules, it was justified by the IMF\u2019s Managing Director Christine Lagarde on the basis of the Ukrainian government\u2019s \u201ccontinued efforts to reach a collaborative agreement with all creditors.\u201d\u00a0<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">In other words: a statement by Ukraine\u2019s government that it wants to reach an agreement with its private creditors is being used by the IMF as if it were an excuse to extend into the indefinite future the IMF\u2019s continued taxpayer-guaranteed financing of (\u2018lending\u2019 to) the Ukrainian government, despite the fact that the IMF is violating two of the IMF\u2019s own most-basic rules restricting its lending-authority \u2014 these rules are lending-restrictions whose purpose was to reduce the riskiness of the IMF\u2019s lending, and so to minimize the amount that the IMF will be taking from taxpayers to fund its losses:<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">1: The IMF does not lend to nations at war \u2014 but Ukraine continues being at war against its former Donbass region despite the Minsk II ceasefire agreement; ceasefire violations, especially by the Ukrainian side, continue regularly.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">2: The IMF does not lend to nations that are likely to default \u2014 but every independent source categorizes Ukraine as being virtually certain to default, and the only actual question regarding Ukraine is: when? The IMF\u2019s answer: we\u2019ll keep lending, building Ukraine\u2019s public debt even higher, until our aim is achieved, and then we won\u2019t \u2014 and that\u2019s when the default will occur \u2014 the default will happen when we decide it will happen. It will happen when we will stop lying and saying that it won\u2019t happen.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IMF Violates IMF Rules, to Continue Ukraine Bailouts The IMF, whose bailout operations are absorbed by the taxpayers in the member countries whenever a particular bailed-out nation defaults,\u00a0announced on Friday,\u00a0June 19th, that it will \u201ccontinue to support Ukraine through its Lending-into-Arrears Policy even in the event that a negotiated agreement with creditors in line with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[2015,6177,195,200,6562,418,434,821,862,5510],"class_list":["post-9288","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-bailout","tag-christine-lagarde","tag-debt","tag-default","tag-eric-zeusse","tag-imf","tag-international-monetary-fund","tag-ukraine","tag-war","tag-washingtons-blog"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9288"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9288\/revisions"}],"predecessor-version":[{"id":9289,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9288\/revisions\/9289"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}