One does have to ask whether the IMF would have been quite so attuned to debtors wishes if they were not so concerned about propping up banks that have patently made poor business decisions and who now rely on sovereign government to support them.
In past financial crises where the International Monetary Fund (IMF) has stepped in to lend funds to governments that have lost the trust of the markets, it has often been criticized for its harsh austerity measures demanded in return for financial support. The IMF’s record of success in turning around a nation’s economy is mixed at best only lending support to arguments that it is most concerned with bailing out international bankers from their potential losses.
For the first time ever, we are seeing financial crisis hit the nations that lead the IMF. The initial approach by the IMF, along with European creditors, has been the same in demanding strict austerity measures in exchange for financial support. Pushback by those receiving has been the same. However in this case, the IMF has been more willing to bend to country demands and appears to be increasingly willing to move away from…
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