Was reminded of the IMF loan to Iceland during the 2008 recession, here is a Q and A on the circumstances of the loan. When the "problem" is caused by neo-liberalism there is a different tone.
"Bank supervision and regulation will also be overhauled to make sure a banking crisis of this magnitude never happens again."
"We are not telling Iceland to tighten its belt in the middle of a recession. During the first year of the program, automatic fiscal stabilizers will be allowed to work."
but also, more neo-liberalism down the line:
"The IMF will help Iceland restructure the banks within this broad framework. The strategy includes plans for valuation of the assets of both new and old banks in line with international best practice, compensation from the new banks to the old banks for any discrepancy in the fair value of assets and liabilities taken over, recapitalizing the new banks with the aim of eventually privatizing them, and maximizing asset recovery in the old banks."
"We are not telling Iceland to tighten its belt in the middle of a recession. During the first year of the program, automatic fiscal stabilizers will be allowed to work."
No belt tightening but belt tightening. They were saying no discretionary spending. "Automatic fiscal stabilizers" are just Government programs which 'automatically' rise during a recession because of people losing jobs or falling into poverty, like unemployment checks and food stamps.
the program includes the development of a strong medium-term fiscal consolidation plan to be launched in 2010
and that too for just one year. This is what Ukraine will be facing once the war ends and the Government remains pro-West.
Was reminded of the IMF loan to Iceland during the 2008 recession, here is a Q and A on the circumstances of the loan. When the "problem" is caused by neo-liberalism there is a different tone.
"Bank supervision and regulation will also be overhauled to make sure a banking crisis of this magnitude never happens again."
"We are not telling Iceland to tighten its belt in the middle of a recession. During the first year of the program, automatic fiscal stabilizers will be allowed to work."
but also, more neo-liberalism down the line:
"The IMF will help Iceland restructure the banks within this broad framework. The strategy includes plans for valuation of the assets of both new and old banks in line with international best practice, compensation from the new banks to the old banks for any discrepancy in the fair value of assets and liabilities taken over, recapitalizing the new banks with the aim of eventually privatizing them, and maximizing asset recovery in the old banks."
No belt tightening but belt tightening. They were saying no discretionary spending. "Automatic fiscal stabilizers" are just Government programs which 'automatically' rise during a recession because of people losing jobs or falling into poverty, like unemployment checks and food stamps.
and that too for just one year. This is what Ukraine will be facing once the war ends and the Government remains pro-West.