05/09/14

Permalink The IMF goes to war in Ukraine

Pepe Escobar The IMF has approved a $17 billion loan to Ukraine. The first $3.2 billion tranche has arrived on Wednesday. It’s essential to identify the conditions attached to this Mafia-style “loan.” Nothing remotely similar to reviving the Ukrainian economy is in play. The scheme is inextricably linked to the IMF’s notorious, one-size-fits-all “structural adjustment” policy, known to hundreds of millions from Latin America and Southeast Asia to Southern Europe. The regime changers in Kiev have duly complied, launching the inevitable austerity package – from tax hikes and frozen pensions to a stiff, over 50 percent rise on the price of natural gas heating Ukrainian homes. The “Ukrainian people” won’t be able to pay their utility bills this coming winter. Predictably, the massive loan is not for the benefit of “the Ukrainian people.” Kiev is essentially bankrupt.

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