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IMF Approves $17.5 Billion Ukraine Bailout
To all those Greeks who are wondering why their government is raiding their pensions so it can make recurring payments to the IMF, here is the answer:
- IMF BOARD SIGNS OFF ON $17.5 BLN FOUR-YEAR LOAN PROGRAM FOR UKRAINE -- IMF CHIEF LAGARDE
- IMF'S LARGARDE SAYS UKRAINE HAS MOVED TOWARD TALKS WITH HOLDERS OF ITS PUBLIC SECTOR DEBT WITH A VIEW TO IMPROVE MEDIUM-TERM SUSTAINABILITY
- LARGARDE SAYS UKRAINE PROGRAM AMBITIOUS, INVOLVES RISKS; SAYS THERE IS "REASONABLY STRONG PROSPECT OF SUCCESS
- LAGARDE SAYS UKRAINE OFFICIALS SHOW STRONG COMMITMENT TO REFORM
That said, there are risks. Such as a civil war:
- LAGARDE SAYS CONFLICT IN EASTERN UKRAINE POSES RISKS TO LOAN
But that's ok because:
- LAGARDE SAYS MINSK CEASEFIRE LARGELY HOLDING FOR NOW
Oddly enough, that is not what the US said yesterday and today, when it used the breakdown in the ceasefire as the pretext to send tanks and armors to Latvia and Humvees and drones to Ukraine.
That said, this is great news for Gazprom whose gas payments from the Ukraine for the next several years are now assured. The only question is how long will it take the current puppet government to syphon off enough funds into various illegal ventures and offshore accounts before the IMF has to step back in a la Greece with bailout #2.
And as a reminder, this is what the IMF said a month ago when the IMF proposed its $17.5 billion bailout for the first time:
Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement today in Brussels, Belgium:
“I am pleased to announce that the IMF team working in Kiev has reached a staff-level agreement with the Ukrainian government on a new economic reform program that would be supported by an Extended Fund Facility of SDR 12.35 billion (about $17.5 billion, €15.5 billion) from the IMF, as well as by additional resources from the international community. I intend to recommend this program for consideration to the IMF Executive Board. This new four-year arrangement would support immediate economic stabilization in Ukraine as well as a set of bold policy reforms aimed at restoring robust growth over the medium term and improving living standards for the Ukrainian people.
“It is an ambitious program; it is a tough program; and it is not without risk. But it is also a realistic program and its effective implementation—after consideration and approval by our Executive Board--can represent a turning point for Ukraine.
“There are a number of reasons why this new program can succeed:
“First, demonstrated commitment to reform.
“Over the past year, despite the challenging environment, the Ukrainian authorities have clearly shown their commitment to ambitious reform on several key fronts. They have maintained strong fiscal discipline (a 2014 deficit of 4.6 percent of GDP vs. a target of 5.8 percent); they have adopted a flexible exchange rate regime; and they have significantly increased household gas prices to 56 percent of the import price and heating prices to about 40 percent of the import price in 2014. In addition, in the first such move in many years, they have begun to strengthen the country's anti-corruption and anti-money laundering framework.
“Second, front-loaded actions going forward.
“The government is committed to front-loaded measures under the new program—including further sizable energy tariff increases; bank restructuring; governance reforms of state-owned enterprises; and legal changes to implement the anti-corruption and judicial reform agenda. This program will require the authorities’ steadfast determination to reform the economy. To help cushion the adjustment, especially for the poorest groups, measures are being taken to strengthen and better target the social safety net.
“Third, increased external support.
“The change in the IMF-supported program (from Stand-By Arrangement to Extended Fund Facility) will itself provide more funding, more time, more flexibility, and better financing terms for Ukraine to implement its reform agenda. These IMF resources will be complemented by other bilateral and multilateral financing. In addition, as the Ukrainian government has previously announced, it intends to hold consultations with the holders of their sovereign debt with a view to improving medium-term sustainability. From these various sources taken together, a total financing package of around $40 billion is estimated over the four year period.
“In short, this new program offers an important opportunity for Ukraine to move its economy forward at a critical moment in the country's history. And yet, while this is a comprehensive and strong program, it is also subject to high risks. The main risk, of course, relates to geopolitical developments that may affect market and investor confidence. For this reason, the program is based on conservative macroeconomic assumptions to buffer further the impact of the conflict in the East.
“Of course, resolution of the conflict, so critical for people, would also strengthen and speed up prospects for macroeconomic stabilization and growth.”
* * *
To summarize: Greek pensioners are now paying the IMF, which is paying Kiev, which is paying Gazprom, which is paying Putin.
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Ukraine totally surrendered to banksters. Good luck.
If Greece would just bend over and lube up they could have magic money too. Maybe they should declare war on France....
IMF to Ukraine: Throwing bad money at worse countries.
So now Putin can bail out Greece!
What a circle jerk!
No, he buys gold.
He should blow the whole sum on silver (single order, physical delivery) just to fuck with JP Morgan.
If I were Vlad I'd send one of those Mistral-class amphibians to NYC to collect the shipment.
Ukraine: We need $ to fight a war with Russia.
IMF: DONE!!
Greece ain't paying the IMF. The IMF just gave them free money, and everyone involved knows that. This is all about bailing out german banksters.
That thought gave me a semi erection.
( I'm not 20, give me a break)
Not 20, hence the semi-erection? :>D
why would he bail out Greece when he can simply rent military bases instead?
IMF: Controlling countries through debt slavery.
Just a guess but I bet every single country the IMF has "helped" is completely drowning in debt that has hurt that country more than it has helped.
Mr. Perkins, please pick up the white courtesy phone.
pods
Sorry Pods, I hadn't seen your post about "Hitman"
"IMF: Controlling countries through debt slavery."
That picture of LaGarde should feature her holding a hangman's noose.
Perkins pretty well spelled it out in "Economic Hitman"
So now they can buy their gold back?
Hey, WTF. Why am I not in that payee loop. I like olives and Ukie chicks as much as the next guy.
That's kind of the plan, cossack. Banks are in the payee loop, we're not invited.
Us little people are in the payer loop, as always.
Ya know, I'm gettin' just a little bit tired of being in the wrong loop all the time.
One word: woodchippers
Would have been much easier for the Greeks to just borrow from Putin and cut out all the middle men
Sounds like the circle jerk is picking up steam....
Borrow shekels- > Buy Arms -> Destroy Economy -> Borrow more shekels
US Taxpayers to the rescue again!
This shit is getting old.
IMF is based in Washington and takes orders from Washington
They don't have any money to give away, it is a f*cking shell game
Arranged to allow the looing of Ukraine while the weapons are shipped in
was this in actual dollars or newly-minted, draghi-euros?
yes, it was in 18 trillion debt infested dollarz
Awesome summary, though fustercluck would work just as well and be shorter.
Plus one for, "fustercluck"
LMAO. just turned 17 billion into dust
Putin will turn it into gold dust.
The zionist neo nazi regime of Ukraine is supported by the zionist central wankster cabal.
The Impossible Mission Force at it again.
Free guns and training to Ukrainian rebels. Meanwhile, the dems here continue to do everything they can to make sure you and I can't own a squirrel gun or feed it if we do.
Yes. Loan 17 billion to a bunch of bankrupt nuts trying to start a war with Russia, while in the middle of their own civil war, in which they have lost control of all their Eastern industrial centers. Ukraine is a terrible credit risk. Kiss that money goodbye.
And the US will pay something like 65% of that 17 billion?
Yes the cost of the advance is majority USA as is the military equipment and training but the eventual purchase of the assets - land and mineral rights when added to cost of taking down Russia is still cheap asset acquisition
this is a hostile takeover no different than the 80's and 90's when financial raiders blackmailed the target for peace
and how many minutes of printing is that?? 'so many countries to save, but only so many hours in a day'.....JYell
Yep, that money is gone. It will find its way into Cayman Islands accounts belonging to Yatsenyuk, Poroshenko, Kolomoisky, and the rest of the criminal parasites.
Expect the Glorious Ukrainian Heroes® under Kiev's command to resume artillery and rocket attacks against Donbass schools, churches, homes, and hospitals as soon as the first tranche of IMF money arrives.
Money from nothing and Ukrainian chicks for free
PorkyShenko...
fucking idiot tool...
i really wish Putin would just squash this shit overtly to send Europe and these assholes here in the United States of Soxiopaths a blunt message....
"step the fuck off...."
So in summary, the ukrainians turned down Putin's bail out of $26bln, went into a civil war, killed 5K of their countrymen, and then got a shittier bail out deal, higher energy prices, and became the staging ground for a possible WWIII. Good choice.
Nuland can explain that: you're just pawns - die. Fuck the Eu, fuck you, fuck history, fuck everbody. PNAC uber alles.
Yeah but, they got Hunter Biden to run their energy company. As always "follow the money".
Burmisa Holdings is controlled by Kolomoisky
long chain to Kolomoisky's Privat Group
caption contest? "Look I got a face lift and made this beautiful handbag from the scraps. It puts the same lotion on it's skin as it's handbag"
If I legally change my name to Mr. Ukraine and blow up stuff on my property can I get a cut? Just $1 million?
Yes, but we would have to turn off your gas first, overcharge you for arms you can't use, and then have your wife, kids, relatives and neighbors steal as much of the leftover money from you as possible. When you're broke once again, we'll appoint a Lithuanian and a Scientologist to adminster your finances. Oh, and you have to give us all your gold and take these leaky, knock-off nuclear fuel rods.
Any questions?
Ah... I knew there would be a catch.
Only if you have a few thousand beautiful beautiful Ukrainian daughters that are invadable.
Dont we have their Gold ? I thought I read that.
No one could have seen this coming!
The NewLand of the Ukrainians’ .
The NewLand of the Ukrainians’
Did you mean "Nuland of the Ukrainians"?
Yup!
The lesson is clear - if you are Obama's stooge, you will get all the money you want. The great United States of America can conjure up trillions and its currency stays sky high even as US debt and unfunded liabilities exceed $1,270,000 per taxpayer.
Forward.
I thought that the IMF couldn't loan money to countries in conflict? Did they change the rules while I was a sleep? Guess so.
$17.5 Billion
1+7+5=13
1+3=4
“First, demonstrated commitment to reform=1
“Second, front-loaded actions going forward.=1
“Third, increased external support.=1
4+1+1+1=7
Looks like the psychobitch hit her number 7 again...
LOL@rules
God forbid anybody ever steep in the consequences of their own actions for awhile. It's well past time for Atlas to shrug and go grab a beer. Nemesis is chomping at the bit to get a piece of the NWO.
17.5 billion what? US Dollars??? LOL, but the TEEVEE told me the US Dollar was "strong". How can something be strong (hold value) when 17.5 billion of them can be instantly created out of thin air?
12,35bn SDR (~ 17,5 billion dollars)
Correct. This means Yen, Pound Sterling, Euros and US Dollars are about to be created out of thin air. All of those bastards just got poorer.
IMF: You can have the money if you let us protect you from (*cough* invade *cough*) Russia.
Fourth, place liens on all tangible property.
Fifth, profit.
I love this succint summary because that is how it is. IMF paying Putin.
Not sure about the summary, how does all the money end up at Putin exactly?
In any case, Ukrainians should study some history, Holdomor anyone?
The drought also affected Russia but nobody wants to talk about that or that farm techniques used at the time were questionable or that some farmers challenged the political situation at the time and any of those factors may have had affected crop results. The point is that there are still open questions. The narrative that Stalin did it deliberately fits the current propaganda narrative but many questions do remain. The Ukrainians themselves are divided on the subject, recent polls suggest 45.4% of respondents believed that the Holdomor was "a deliberate attempt to destroy the Ukrainian and 26.2% rather or completely disagreed with this. Lastly, all the books written that have been very aggressive making the claim that Holdomor was deliberate act by Stalin come from Western researchers and sources. I just hope that people can leave room for a few questions and understand that Stalin and the USSR are dead and gone. Russia today is not the USSR.
Bengalis think their famine in 1943 was deliberate policy of Winston Spencer-Churchill.......
http://en.wikipedia.org/wiki/Bengal_famine_of_1943
March 1943, Calcutta, the second biggest city in the world, had only two weeks food supply in stock........By August 1943 Churchill refused to release shipping to send food to India.[65][66][67] Initially during the famine he was more concerned with the civilians of Nazi occupied Greece (who were also suffering from a famine) compared with the Bengalis,[68] noting that the “starvation of anyhow underfed Bengalis is less serious than that of sturdy Greeks”
Soviet was never a Russian construct
No matter how many times this is said, it will seemingly never be enough.
What about Holdomor?
ukraine purchasing russian gas...
In the aftermath, it will look like the IMF did everything humanly possible to destroy EU member countries and those around them.
Old leather face looks like a bag lady.
So Hasenstab is a glorified BTFDer, huh?
http://www.zerohedge.com/news/2015-02-01/famous-bond-investor-turns-out-...
Cue loud slurping sound as it all disappears into someone's pocket. The IMF is just a political tool . Still. it gives the Greeks something to be proud about knowing that their suffering is making some US puppet in Ukraine even richer.
Isn't it nice how gold plunged just before this annoucement? This shit will end one day soon.
Soon? Who knows. I thought much sooner than this.
Double
The Ukraine is dead, the country will never be the same, the IMF has come up with $17.5b to re-finance a corpse. This is an all in bet in a winner take all game of geopolitics. The West and in particular the US will never admit bankruptcy or insolvency as long as occupied Europe shuts up and does as they are told and the Fed's printing press is working overtime. The Minsk accord is a charade and has already failed by some accounts and others are waiting for a massive false flag to justify the total war. There is no doubt in my mind that we are on the verge of a hot war with Russia that we, the West will lose. Facts don't matter to the neo-cons, they believe, they have faith, they are narcissistic psychopaths who are willing to start a war for all the marbles, they keep betting double or nothing and are on a terrible losing streak, they must be stopped. We are $18 Trillion in debt and the neo-cons think that they can continue to print money, bribe Ukrainian Nazi's and greedy banksters forever, the game is over, some adult will have to step in and teach them a lesson or we will have a very hot summer. I am not hopeful.
Strangly the Neo-Cons don't seem to realise that Russian subs carry conventional warhead missiles so that in the event of war against Russia via Ukraine there is a real chance of the US being hit prior to any nuclear exchange. That's if they even know that they are probably cruising undetected off parts of the US coastline.
For the first time the US itself will not come off scotfree through a war.
As Russia says, the first Russian to get killed by a US weapon via Ukraine and all bets are off.
For whatever reason, there does seem to be a certain Western mindset that the Russians are somehow unable / incapable of "effectively" fighting the West. Maybe because "The West" (aka US) has not seen significant push-back, yet (despite significant provocation, which must include the Nemtsov assassination).
Notice how "The West" has become more overt and brazen in the demonisation of Putin / Russia of late, and the deliberate placement and display of military hardware within a few hundreds of metres of Russian territory?
Notice the "one opinion fits all" blanket reportage of all the controlled Western MSM?
"No Response" engenders complacent thinking. Complacent thinking engenders poor / sloppy decision-making. Poor decision - making might just have the "consequences" Russia is planning for.
Will we see an "accidental" incursion with a few tens killed (andf a flurry of "profuse apologies"??), or a deliberate, "full-on" incursion, "to teach the Russians a Hard Lesson".
The outcome will be interesting.
So, the war will continue. Sad.
Good now they can pay for the gas.
WE can pay for their gas.
corrected it for ya.
Just like the banks funded the German Nazi's, they are now funding the Ukrainian Nazi's. Deja vu
The orange "lady" with the adams apple doesn't pay any taxes.
Funny that....
IMF gets its money based on the members relative size to the world economy. Thus Greece isn't contributing all that much.
A misleading statement to say Greeks are paying Putin. It is the US taxpayer and other nations with a larger GNP that is paying Putin.
Greeks are paying back IMF "loans" and thus are contributing all they've got, and more (eventually).
I had not time to read the entire deal above. But yesterday I did have time to read the IMF terms to the Kiev Junta Government. I calls for austerity of a severe form. The worst hit will be in energy costs to individuals. The other big hits will be pension and wage cuts. Education will be slashed by around 2/3 leaving only a central core university sytem left. To starty with 250,000 civil service employees will be fired, obviously there are more to come there. State support for industires like coal and steel will be phaed out and mines and mill shut. I could continue as there are many small cuts too. But Kiev does, at the same time, plan a massive military build up.
If you read ZH, then you are way smart enough to know what is coming in Ukraine. A depression equal to the 1919 collapse and revolution of Czarist Russia. Where people thought dog was a feast, and stale bread a luxury.
The IMF now owns Ukraine, as these are LOANS, which carry interest and must be paid off at some distant date. Who here believes Ukraine, the rump of Ukraine left after the revolution in Kiev and civil war in the east, can rebuild under these conditions. Russia made up the largest share of Ukraines economic ties and was Ukraine biggest customer. That is gone. Will Berlin suddenly import Ukrainian goods? Hardly!
Berlin is a long way from the German public who want to keep well away from Ukraine and fear bad relations with Russia which have never boded well for Germany. Ukraine is going to collapse like Hungary in 1945-1946 into hyperinflation but without any steadying hand. Russia is waiting for the EU to carry the burden of Ukraine
Once again, the result of our meddling is death and multi-generational suffering. Gee, I think I see a pattern here.
Not "our." THEIR
Why doesn't Draghi start buying up Ukrainian Bonds just to round the circle ?
Why does Christine Lagarde look like Andrew Jackson?
Umm, reincarnation? The same barber? Just flailing along here... :>D
Yes, but they need $50bn as minimum. ANNUALLY! No four years.
Ua needs annually at least $50bn from abroad next 10 years. Otherwise it will be second Somalia.
Look, what they have done.
Before the putsch they had $170bn GDP (2013).
They lost DOnbas and they lost Russian market.
They lost 25% of the tax revenues for treasury and 30% of their export markets.
How do they want to compensate it within 1 year or 2 years? Is US or Europe going to buy their goods and services? Do they offer any, which could be traded?
yes they do - I am buying Halva made in UA quite often
17.5 billion worth?
This seems to be one "Export Industry" of note - just asking to be taxed into submission - http://www.ukrainewoman.net/
However, this might be "useful reading" before taking the plunge. . . . http://www.theguardian.com/lifeandstyle/2014/apr/06/ukraine-wife-internet-romance-industry-online-scam
One of my employees travels to Kyiv at the end of this month for a week. I was there a few months ago and can confirm that life there is notably harder now but its citizens have a good work ethic and are doing the best they can. She speaks Ukranian, and Russian and is selling our anti corruption product to government agencies there so I will hear from her insightful gossup when she returns.