Last week the International Monetary Fund (IMF) said its executive board has approved $1.4bn in emergency funding to support Ukraine. This comes just months after $700m was disbursed to Ukraine by the IMF in December, and $2.7bn in IMF Special Drawing Rights, or emergency reserves, that Ukraine received as part of an IMF allocation in August. We know that IMF funding comes with conditions, but what are they?
When Ukraine was in a bad economical way in 2013, despite already having a trade deal with Russia, the Ukrainian President looked to the EU for a better agreement than they already had. They were also in negotiations with the International Monetary Fund but although they had been counting on the IMF, after two years of negotiations, no deal was to be had and Ukraine’s President at the time Viktor Fedorovych Yanukovych turned to Russia.
It was a “uniquely special economical” relationship according to Russian President Vladimir Putin who agreed to purchase 11 billion Euros of Ukraine’s debt and to cut the price paid for gas by about a third. The Wall Street Journal reported on Dec. 17, 2013, that Russia “lavished” Ukraine with a bailout package worth at least $20 billion ” trumping the West in a Cold War-tinged struggle that keeps the former Soviet republic in Moscow’s orbit.”
A Uniquely Special Relationship
Additionally, a Ukrainian economic analyst Ihor Burakovsky told euronews: “By definition, we are losing our sovereignty and we are becoming a kind of highly indebted country with all the political consequences.
Not only showing their reluctance to leave the cold war behind them but also failing to add that negotiation with the IMF came with their own unacceptable conditions.
The IMF could only suggest in return for their help was for Ukraine to raise the utility rates of the natural gas and electricity prices significantly.
Thus, forcing an already financially struggling population further into poverty.
President Yanukovych said that this would mean a lot more expense for the Ukrainian people but their income would remain the same, he said he could not go there.
Although he suggested different solutions, the IMF refused, leaving the Ukrainian President with only one option and that was to accept a partnership with Russia, due to the austerity loan conditions. The two Tweets below show clips from the Oliver Stone documentary Ukraine on Fire, which is increasingly hard to find on the Internet this last week for some reason!
The International Monetary Fund (IMF)
The International Monetary Fund (IMF) which has its headquarters in Washington D.C. is a financial institution formed at the Bretton Woods Conference in 1944 and was said to adopt ideas of British economist John Maynard Keynes and the then U.S Treasury official Harry Dexter White,
Consisting of 190 countries, the IMF states that their mission is “working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.[source]
Arguably, this does not seem to be what they tried to do in 2013 Ukraine. Although they also state that the fund has other activities such as the gathering of statistics and analysis, surveillance of its members’ economies, and the demand for particular policies.
The IMF Managing Director
There has been a deal in place since the 1940s which means Europeans always choose the head of the IMF in return for the job of running the World Bank going to an American and Bulgarian born Kristalina Georgieva was selected for the position of Managing Director of the IMF on September 25, 2019.
Notably, before joining the IMF, Georgieva was CEO of the World Bank from January 2017 to September 2019, during which time she also served as Interim President of the World Bank Group for three months. and was accused of manipulating data to boost China’s ranking. Is this important here? Who knows, but it is worth mentioning that despite this, she was to remain at the IMF [source].
This allowed her to issue a joint statement on March 2, 2020, on behalf of the IMF with World Bank President David Malpass announcing that they would help address challenges posed by Covid-19 ‘with special attention to poor countries … “us[ing] our available instruments to the fullest extent possible” (IMF, 2020l).
COVID Relief With Conditions
Again the IMF and World Back help to address the challenges that came with conditions according to Belarusian President Aleksandr Lukashenko and although this is old news from back in July 2020, it is worth repeating as more people are now ready to see the corruption that has driven this plandemic.
It was through the Belarusian Telegraph Agency, BelTA, that Lukashenko said that the World Bank and the IMF offered him $940 million in the form of “Covid Relief Aid”. In return for the $940 million (and the sustainability of the aid).
The World Bank and the IMF required the President of Belarus to:
- Impose “extreme” lockdown to the citizens
- Force citizens to wear face masks
- Enforce very tight curfews
- Enforce a police state
- Economic crash
Declining the bid Aleksandr Lukashenko claimed that he was unwilling to consider such an offer and would place his people above the IMF and World Bank needs. because, as we have seen till now, the IMF and the World Bank tactic includes the crash of every major economy to purchase the infrastructure of a country at a ridiculously low cost.
That is how financial aid is becoming a sustainable investment for the IMF and World Bank, it would seem?
Ukraine Took The Money
What are the conditions that Ukraine will have to adhere to? “Financing needs are large, urgent and could rise significantly as the war continues,” said.IMF boss Georgieva, last week, and that once the “war was over, Ukraine was likely to need additional “large support”.
This “large support” approved by the IMF executive board is on top of the already approved $1.4bn in emergency funding announced on Wednesday the 9th March 2022 which was said “… will help meet the urgent balance of payment needs arising from the impacts of the ongoing war and will provide critical support in the short term while playing a catalytic role for financing from other partners,”
It also comes on top of the $700m disbursed to Ukraine by the IMF in December, and $2.7bn in IMF Special Drawing Rights, or emergency reserves, that Ukraine received as part of an IMF allocation in August and all of this “succeeds the 14-month Stand-By Arrangement (SBA) that was approved in December 2018, which the IMF says was focused on maintaining stability during the election year (see Press Release No 18/483 ).
The approval of the SBA enables the immediate disbursement of the equivalent of SDR 1.5 billion (about US$2.1 billion). The remainder will be phased over four reviews [source]
Debt, Inflation, Interest = Servitude
There is a process of manipulation being played out by a group that is termed the “Corporatocracy” according to John Perkins, author of “Confessions of an Economic Hit Man: The shocking story of how America really took over the world” This manipulation is achieved through the use of debt, bribery, and political overthrow. The primary goal for these people is to maximise profits regardless of the social and environmental costs.
Just as the Federal Reserve keeps the American public in a position of indentured servitude, through perpetual debt inflation, and interest, says Perkins, The World Bank, and the IMF serve this role on a global scale.
The basic scam is simple, put a country in debt either by its own indiscretion, or through corrupting the leader of that country, then impose conditionalities, or structural adjustment policies, often consisting of the following
Currency Devaluation – when the value of a currency drops, so does everything valued in it. This makes indigenous resources available to predator countries at a fraction of their worth.
Large Funding Cuts For Social Programs – These usually include education and healthcare compromising the wellbeing of the society, leaving the country vulnerable to exploitation.
Privatisation – of state-owned enterprises, meaning that socially important systems can be purchased and regulated by foreign corporations for profit.
Trade Liberalisation – or the opening up of the economy through removing any foreign restrictions on foreign trade. This allows for a number of abusive economic manifestations such as transnational corporations bringing in their own mass-produced products and undercutting the indigenous production and ruining local economies.
The bottom line is, there are always conditions, and the IMF and the World Bank are to poverty and financial stability as The Gates Foundation is to philanthropy. Zelensky through representing Ukraine has sold his soul to the IMF and the World Bank, but what then are the conditionalities that have been imposed on the people of Ukraine?
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