What is the IMF?
Created in 1944 at the Bretton woods conference of the United Nations, the international monetary Fund was declared as a financial institution that provides loans to members with balance of payments deficit of the state. However, lending is accompanied by a set of specific conditions and recommendations.
That is, the structure is declared as having a good purpose (such as development cooperation, trade, productive resources, growth of employment and incomes of citizens of member States of the IMF) is in fact aimed not at improving the independence, stability and development of the national economy of the state, and only tying her to international financial flows.
Countries joining the IMF (189 members), are required to open their politics and economy for the structure.
How does the international monetary Fund?
Due to the corruption of the local elite breaks down economic system, are set free prices, which leads to an increase in electricity tariffs, housing, and Essentials. Consequently, the impoverished population, businesses close, unemployment increases.
And then the IMF provides another loan, to support that country obviously can not give, because the profit is not received in the budget due to the decline of the economy! Further, in connection with impossibility to pay the loan, the IMF proposes new conditions (cuts in social benefits, the costs of unprofitable regions, etc.)
Then the new conditions, and have a final — universal privatization, promotion of private property to the detriment of the state (that is, retribution of the country!).
Why countries receiving IMF support, are becoming poorer?
The IMF’s shareholders, which the famous American economist John Perkins called “economic hit man”. In his book written in 2004 about the essence of the work of the IMF and the world Bank and its consequences, Perkins notes that the goal of economic killers is to push the governments of sovereign States to carrying out the recommended set of economic and social reforms, promising to modernise the economy, the development of market economy, attraction of advanced technologies through foreign investment.
According to Perkins, a key element of any mega-project of this kind are excessive external borrowing, and the reforms are implemented exactly as they were painted by the IMF, regardless of the will of the people or even the change of government.
Enslavement without war
The seizure of new territories is taking a different form. The usual form of war with guns and tanks and bloodshed are gone. Modern intervention — not military. She financial debt. The leaders of the global corporatocracy has long realized that to enslave the countries and people do not need to spill blood, enough to plant local elite on a credit needle, and turn the country into a colony.
And if the head of the enslaved countries will become competent and strong government, it begins to get out of bondage, as in his time did Iceland. Corrupt, the government will merge the state of international invaders! The catastrophic consequences of the enslavement of the States from private owners of the IMF can be seen in a number of countries.
In 1980, the Foundation allocates $ 150 million, but attempts to fulfill the recommendations of the organization in the economic life of the country lead to the collapse of the economy itself and then of the entire state. The result begins a bloody civil war and the disintegration of the country.
In 1982 he received from the IMF of $ 260 million for reforms that eventually stalled. And the subsequent economic collapse because of debt led to an uprising in the South. Still in Sudan, has lost its southern territories, continues to pay the IMF debt.
Getting a loan from the IMF in the 80’s, the economy of this country was completely ravaged, and the United States in the face of the IMF gained control of public finances. From the country in the United States has passed $ 45 billion, and General impoverishment has resulted in migration to other countries.
The country in the late ‘ 80s demonstrated a fairly successful economic development, but has suffered from drought, was forced to take a loan from the IMF. In response, the IMF demanded an end to support local farmers and events of the devaluation of the national currency, the fivefold increase in the national debt and the transition of farmland to the property of Western corporations. The result — a civil war.
In 1990, the Belgrade has fulfilled the requirement of the IMF, sharply restricted budget using the most subsidized parts of a single state. As a result, fell sharply the standard of living, increased unemployment, worsened inter-ethnic relations and civil war began that led to the intervention in Yugoslavia NATO troops.
Similar scenario was faced in other countries, such as Thailand, Malaysia, Indonesia, South Korea. In the past in exchange for $ 60 billion the government has agreed to sell to foreign companies the assets of two largest banks to provide foreign financial institutions the right, without limitation to conduct operations in the country. In addition, Korea has lifted a ban on the sale of land to foreigners. Today the economy of this country is almost entirely controlled by American capital.
Almost the only country that still resisted the onslaught of the IMF is Greece. However, it is a merit of the EU, which has assumed a significant part of the cost of stabilization of the Greek economy, if only to prevent the exit of Greece from the EU and the blow to its reputation.
Can Ukraine hope for the Greek version? Obviously not, because we have not accepted the EU. Some figures about the results of Ukraine’s cooperation with the IMF, starting in 2014.
For the period 2014-2020 Ukraine was in the three IMF programs (stand-by arrangement (SBA) — Gah in the 2014-2015 and 2018-2019 And the extended Fund (EFF) in 2015-2018).
In the framework of the relevant programmes, the selection of the credit of IMF funds amounted to 39%, including:
- the SBA program (2014-2015) — 27% (received tranche 2 of 9) — the program completed ahead of schedule on the initiative of the Ukrainian side in connection with the transition to the EFF;
- according to the EFF program (2015-2018) — 50% (received 4 tranches from 16);
- the SBA program (2018-2019) — 36% (tranche 1 of 3).
The national Bank was paid a Commission of the IMF for unused funds:
- according to the SBA program in 2014 was 265 million UAH;
- according to the EFF program for the period 2015-2018 — 1 billion 200 million UAH;
- the SBA program (December 2018 — December 2019) in March 2020, the cost was allocated 133 million hryvnia.
Thus, in General the period 2015-2019, the NBU has paid the fee for unused funds — 1 billion 600 million hryvnias.
With 2014 as at the end of Q1 2020 net income on IMF loans (including repayments on prior programs) amounted to 4 billion 300 million dollars.
Despite the fact that the program of cooperation with the IMF envisaged structural and institutional reforms to increase investment capacities of Ukraine, upon substantial investment in the Ukrainian economy over the period 2015-2019 was not, on average, they amounted to about 1.8% of GDP, which is twice less than in the years 2008-2013 and have a tendency to further decrease.
Program in 2020-2021 years
The amount of scheduled payments on IMF loans (repayment and maintenance) in 2020 will amount to 1 billion 400 million dollars., in 2021 of 1 billion 600 million dollars, which could deepen the deficit of financial resources in the country and the economic crisis.
The government haphazardly attempts to perform any obligation, to create the appearance of reform, but positive results for the Ukrainian economy to no avail.
What awaits us?
Continuation of the systematic subjugation of the country! Ukraine, which we got in 1991 — a country with a developed infrastructure, economy, industry, a progressive science for 29 years, has become the most poor country of Europe!
Sale land Fund, intentional bankruptcy and the sale of strategic enterprises, the increase in tariffs — all these so-called “reform”, produced for the requirements of the IMF, making us completely dependent on foreign capital resource colony. And health and education reforms are designed to the depopulation and debilitation of the population!
They do not need educated people that are difficult to manage. But only the ignorant mass that can resist the excesses of power, sold in turn to foreign capital.
The program of enslavement of Ukraine for 10 years, the projected privatization of the courts, medical facilities and schools. Who wants to go to court to give the child education will have to pay! Treatment for fabulous sums. No money — die.
We saw this catastrophic scenario, for example, a number of countries. The same program is being implemented in Ukraine. It is clearly spelled out in the manuals, which to the smallest detail followed by our government officials, enacting criminal laws and to merge the country!
The output we have only one — a complete change of course and abandonment of IMF lending!