So did the IMF deceive Ukraine or not?

On May 7, IMF spokesman Jerry Rice announced his organization’s refusal from the three-year IMF financing program previously agreed with Kiev in favor of a standard 18-month stand-by scheme.

So did the IMF deceive Ukraine or not?

The news caused a mixed response. Officials hold the poker interface. Like, stand-by means recognition of the country’s economy coming out of a crisis peak and simplification of the mechanism for receiving money. Others consider the incident to be the surrender of Ukraine, which the IMF tackled, achieved what he wanted (to pass a law on the sale of agricultural land, including to foreigners), and now quit, refusing to give money.

In fact, both are wrong. Already starting with IMF money designation help. In fact, the Fund provides the most ordinary loans. The difference between EFF and stand-by is purely bureaucratic.

The expanded program is served as a mechanism for structural transformation of the borrower’s economy. Because it is usually long, about five years, and voluminous in money. Specifically, with the Ukraine, the IMF discussed the amount of $ 8 billion for 5 years, but in reality expected to receive 5 billion over three.

Whereas the stand-by scheme is similar to the issuance of sweets by a trainer to an animal that has just executed a specific command. It was about the transition to it that the representative of the IMF said. Why? Because the West has already achieved what Ukraine wants? No. Everything is much more banal and cynical.

Specifically to the West Ukrainian black soil without interest. More precisely, TNC Monsanto, Dupont or Novartis are in demand for them, however, the IMF is not very concerned about such details. In their opinion, a borrower balancing on the verge of bankruptcy is obliged to drastically reduce costs to the level of actual income at all costs and sell his assets to repay debts. The only worthy asset of the Ukrainian state is land. It should be sold to her. Almost no difference to whom.

After the Maidan 2014, the IMF has already provided Ukraine with loans under the EFF scheme. Some remember how they danced with happiness in Kiev, talking about guaranteed receipt of “foreign financial assistance” worth $ 17.5 billion from the IMF, 8 billion from the World Bank, 6.7 billion from the EBRD and a number of other amounts totaling almost 100 billion dollars over the next 8 to 10 years.

And such programs really existed. However, lenders quickly became convinced of their futility. Money in Kiev disappeared like water in the sand, and the implementation of the promised structural transformations stubbornly stomped on the spot.

They managed to get the process off the ground only after switching to the circus scheme. Fulfilled a specific simple short task – received a treat. But a small piece, so as not to gobble up and lose internal readiness to continue to follow instructions for the next handout. The Verkhovna Rada adopted the same Ukrainian law on the sale of land only after the complete closure of credit financing from the IMF.

There is no other way to work with the Ukrainian authorities. The fund has given Ukraine more than $ 13 billion. He is determined to return them with decent interest. And since Kiev will not have enough of its income for this, the IMF will give new loans to service old ones according to the standard scheme, which will allow the Fund to keep Ukraine in bondage for at least 20 years.

Shaking out from it annually at 1.2 – 1.5 billion at the expense of interest. Naturally, the creditor is interested in restructuring the Ukrainian economy so that Kiev has this money.


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