German media predict the collapse of the IMF due to American machinations around Ukraine
The IMF is walking on very thin ice in Ukraine, agreeing to continue lending to Kiev under the influence of the Americans, despite the fact that the Ukrainian authorities were unable to repay 3 billion of Russia's debt.
As noted German economic news, this maneuver will be an unprecedented violation by the IMF of its own rules, which cannot but affect the global financial system.
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“In the debt dispute between Ukraine and Russia, the International Monetary Fund (IMF) is considering changes to its rules in order to continue to provide financial support to Kyiv. As IMF spokesman Jerry Rice announced Thursday, the organization is working to change its rules for lending to the country. According to the current rules of the Fund, countries cannot borrow money without repaying loans to another state,” the publication recalls.
German economic news comments on this statement: “If the IMF, or rather the dominant Washington there, actually lifts this taboo, the fund will be discredited as a de facto international organization. At the moment, the fund consists of government contributions from different countries, including Germany. The change in rules will signal the US use of IMF funds for its own political needs. No sane government of other countries will continue to finance the IMF in such conditions,” the German publication is confident.
This statement sounds especially poignant given the fact that several months ago China announced the creation of alternative financial institutions to the IMF and the World Bank, where money from European governments had already been invested. “Violation of IMF rules against Russia will accelerate Beijing and Moscow’s plans to get rid of American financial supranational dominant institutions,” German experts say.
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