BBS, I'm sure you understand Politispeak, correct? Let's try Al jeezra, it's a nice article and has the politispeak quotes.
https://www.google.com/url?sa=t&rct=j&q ... 8261,d.aWwNow the $17 billion loan is conditional, you agree, correct? That is the Ukraine doesn't have the money yet. The only thing they will be receiving anytime soon is the $3.2 billion. $2.2 of that goes directly to Russia for past due gas payments. Though the Ukraine has to pay $3.4 before the middle of the month or Russia has threatened to cut off the gas. Heck, the initial payment from the IMF won't even cover the whole bill.
But let's get into the conditions. You stated some of them, and those are correct. Also, part of the conditions are that the IMF will reevealuate every two months to make sure all the conditions are being met.
Now, let's get to the politispeak, if you would BBS, please translate this quote, especially the bolded-
Christine Lagarde wrote:āDeep-seated vulnerabilitiesātogether with political shocksāhave led to a major crisis in Ukraine. The economy is in recession, fiscal balances have deteriorated, and the financial sector is under significant stress.
āRisks to the programme are high. In particular, further escalation of tensions with Russia and unrest in the east of the country pose a substantial risk to the economic outlook."
Nice, isn't it? I'm sure behind closed doors things are said much more bluntly, but for us dweebs in the rest of the world all we get is the politispeak, which takes some practice to understand.
The conditions will be evaluated every two months, one of the things being evaluated is the unrest in the country which pose, in Lagarde's words now, "substantial risk to the economic outlook." Well no shit, right? But the real risk, from Lagarde's POV is that if Ukraine doesn't end this unrest somehow then the deal could fall through.
Now the IMF is like any other institution, they perform a certain amount of due diligence. There are firms who specialize is such research and whose clients are organizations like the IMF, or any other lending or investing organization.
Nicholas Spiro, works for Spiro Sovereign Strategy in London and their job is to evaluate said risks. Here is what he had to say on the matter of the Ukraine and the IMF loan-
Spiro wrote:It would be difficult enough for a former Soviet state like Ukraine with a history of shirking reforms to implement an ambitious IMF-backed adjustment program under stable political conditions. Doing this when the country is being torn apart and Russia is hell-bent on undermining and discrediting the government is nigh impossible.
Nigh impossible. And the IMF is telling Kiev the same thing behind closed doors, but in public it's another matter, because that changes certain attitudes of people if the IMF were to come out and flat say the Ukraine has to squash this rebellion to get the full funding of the loan package.
So the reality, and it's not hard to see even with all the politispeak, is that the IMF fronts just enough to hopefully protect Europe's supply of gas while holding a fire under Kiev to do something about the unrest. Something anti Russian obviously. In fact, that's what's stated in this NY Times article-
https://www.google.com/url?sa=t&rct=j&q ... 8261,d.aWwfrom the article wrote:Senior Western officials said on Wednesday that the loans from the United States and from the I.M.F. would be structured to get the government through its first few months without undue political upheaval, putting off some of the more difficult changes until after the May election.
The West has also chosen not to press for early parliamentary elections, one senior official said, because āthe priority now is stabilization in Kiev and de-escalation with Moscow.ā
Now BBS you can understand Politispeak just fine, and the politispeak exactly what it is. You and I both understand
why they can't put it bluntly. We also understand exactly what they are really saying.
That if the Ukraine wants the full funds and future bailouts, they better damn well get this unrest under control. The West will do what they can to help but the fighting has to be done by Ukraine if it's fighting that needs to be done.
Which is all nuts. Which is why Ukraine is conscripting, they have no choice in their mind because they refuse to accept the alternatives.
The conscription and fighting will only drive up costs, and BBS you know as well as anyone who profits the most in such violent times, the money lenders. War is big business for such people.
But it's nuts because the conscription and civil war only drive up costs, of money the Ukraine doesn't have and will have to borrow. Not to mention all the other issues involved in civil wars, like the destruction, the death, the upheaval, etc etc. But all that is big money for the money lenders, is it not?
They lend the money so the various parties can kill each other and blow stuff up and then lend the money to rebuild afterward. It is the ultimate win/win situation for organizations who thrive lending money in such ways. And it doesn't even matter who wins! Whatever government ends up taking over in Ukraine also takes over the Ukraine's debts!
For the right government and the right payoff, the IMF may well forgive the loan, but for the wrong government you can forget any forgiveness. The money will be expected and one way or another will be paid back.
The Ukraine is in one hell of a pickle, that's for sure. But just like elections, coups have consequences. And there is no mistaking that the what happened in Kiev was a coup that is labeled "democracy".
What it really is is one huge con where people are unfortunately going to die.