Turingsage
BANNED
- Joined
- Sep 28, 2014
- Messages
- 2,304
- Reaction score
- -23
- Country
- Location
IMF has never charged 25% or even anywhere near that. It is a known fact that IMF loans are the cheapest you get anywhere. The conditions are there for a very good reason. They are there to ensure the money is not frittered away and is used for carrying out the DIFFICULT structural changes that govt are too afraid or incapable of making. The purpose is to ensure that the economy is moved to a self sustaining path and any further loan requirements become redundant.
That is the primary and singular objective of the IMF. There is a problem which is either midway or at the end of the IMF support governments revert back to the old ways to regain political popularity and often believe job done when it is imperative they retain the discipline.
Take Ireland or Iceland. Both countries economies hit rock bottom and totally crashed. Both sought IMF bailouts and stuck like limpets to IMF conditions. Today both these economies are doing really well outpacing the rest of Europe in their growth rates and sustainability.
There are no magic bullets but the IMF tries to make sure you swallow the bitter medicine and stay on course. Those that do, make it to the sunlit shores. Those that see these conditions as challenge to wangle yourself out of them at the earliest chance, end up wasting the opportunity that IMF offers to make that painful transition to sustainable growth.
That is the primary and singular objective of the IMF. There is a problem which is either midway or at the end of the IMF support governments revert back to the old ways to regain political popularity and often believe job done when it is imperative they retain the discipline.
Take Ireland or Iceland. Both countries economies hit rock bottom and totally crashed. Both sought IMF bailouts and stuck like limpets to IMF conditions. Today both these economies are doing really well outpacing the rest of Europe in their growth rates and sustainability.
There are no magic bullets but the IMF tries to make sure you swallow the bitter medicine and stay on course. Those that do, make it to the sunlit shores. Those that see these conditions as challenge to wangle yourself out of them at the earliest chance, end up wasting the opportunity that IMF offers to make that painful transition to sustainable growth.