Entries Tagged 'Government' ↓

Greece, The IMF and Ukraine

Are you wondering why the IMF is standing by Ukraine against Ukraine’s creditors, while the IMF is refusing to extend even a smidgeon of an olive branch to Greece?

Creditors have loaned Ukraine $70 billion dollars. To receive payment of $40 billion from the IMF,  the IMF required Ukraine to convince its creditors to agree with a restructuring plan that would enable Ukraine to raise $15.3 billion out of the $70 billion it owes its creditors.

A committee of bond creditors came up with such a plan for settling with Ukraine. In response Ukraine: Continue reading →

Greece Reform It or Ruin It?

Today 25 distinguished economists from around the globe have issued a plea to the Eurozone to distinguish between reform and austerity. These are the top experts in the world; they include Joseph Stiglitz, Nobel prize winner in Economics.

What are these experts talking about?

For one thing, they are talking about the troika’s demands for Greek pension reform. Here’s the demand from the bailout monitors that seems least reasonable to me: “…the abolition of a special monthly stipend for pensioners receiving the lowest benefits”. Continue reading →

Evil Back Upon Itself Recoils

The eurozone is playing a dangerous game with Greece. Officials are treating the Greek crisis of payments as a liquidity problem. And that’s true as far as it goes. But Milton’s famous line from Paradise Lost in the title of this post may still be true for Europe

Greece nearly couldn’t pay its debt to the International Monetary Fund (IMF) last week. Greece was able to pay the IMF only by withdrawing its own emergency funds left on deposit at the IMF. Obviously the IMF gained nothing from having Greeks withdraw money they had deposited in the IMF in order to pay the IMF.

Nevertheless, eurozone officials and financial reporters keep referring to Greece’s problem as a payment-on-time problem. That kind of problem is indeed what set off the toppling of the US financial system at the start of the Financial Crisis of 2007.

But it isn’t the same with a sovereign nation like Greece. Continue reading →