The International Monetary Fund confirmed in a March 22 press release, that it had reached “a staff-level agreement” with Ukraine to extend a whopping $15.6 billion, 48-month loan to the Kiev government, which is unable to subsist without outside financial support.
Ukraine’s quota at the IMF is less than $3 billion; a country’s quota determines its maximum financial commitment to the IMF and access to IMF financing. Normally, a country cannot obtain greater than 200% of its quota in new financing. The IMF loan to Ukraine is 577% that.
In the next three years—from 2023 to 2025—Ukraine must pay almost $10 billion to the Fund for previous loans. “In the absence of refinancing, Ukraine will most likely be forced to default,” Alexey Mozhin, Russian executive director at the Fund said.
However, countries throughout Africa, Ibero-America and sections of Asia, in real need of credit to survive and grow, are flatly told by the IMF, they are not creditworthy. Argentina, which has obtained loans (under looter President Mauricio Macri from 2015 to 2019), must submit to grueling IMF reviews and harsh conditionalities every three months, to obtain a billion dollar tranche here or there, dispensed by eye-dropper.
This is the true meaning of the City of London’s and Wall Street’s “rules-based order.”
Establish a pro-Nazi government in the middle of Europe; demonstrate you can turn your country into a staging ground for a proxy war that will lead to nuclear annihilation; your country is creditworthy.
