Sunday, October 12, 2008

World Not in a Hurry to Borrow from IMF

Or to take any of its phony macroeconomic advice. And that's in spite of IMF Chief's announcement that the loan-shark is "ready to lend quickly... based on streamlined conditionality" three days ago. Indeed, countries have been sidelining the Washington-based institution for some years now and everybody, save Rama Sithanen, knows that its loan portfolio has collapsed from SDR* 70 billion to SDR 20 billion in 3 short years with a single country, Turkey, now representing about 1/4 of that dwindling portfolio.

It also made the first loss in its history last year and that is expected to widen to about USD 250 million next year if its own numbers are to be believed. The IMF has also desperately been trying to appear as a development agency. This has failed too. Blame it on the availability of tons of money and better ideas elsewhere.

*you need about USD 1.50 for each SDR.

1 comment:

Sanjay Jagatsingh said...

Finalman buku pei finn amprint depi FMI akoz enn kriz kinn kumanse dan prop baskur zimel Bretton Woods. Me probableman dernye fwa etan done ki sant gravite lemond finn baskil dan lazi ek finn ena kreasyon AIIB.