By John Helmer, published on his website, Dances with Bears, March 19, 2015
The IMF is posturepedic, so Igor Kolomoisky can sleep well at night
The International Monetary Fund (IMF) has decided to give the Ukrainian banks R&R&R – that’s rest from regulation and refinancing. Inspection of the foreign exchange book, unwinding related-party credits, recovery of non-performing loans, and obligatory recapitalization, which were all conditions of the Fund’s 2014 Ukraine loan, have been relaxed. The new loan terms announced by the IMF last week, postpone reform by the commercial banks until well into 2016. In the meantime, the IMF says it will allow about $4 billion of its loan cash to be diverted to the treasuries of the oligarch-owned banks. That is almost one dollar in four of the IMF loan to Ukraine.
The biggest beneficiary of last year’s IMF financing is likely to repeat its good fortune, according to sources close to the National Bank of Ukraine (NBU). This is PrivatBank, controlled by Igor Kolomoisky (lead image), governor of Dniepropetrovsk region and financier of several units fighting on Kiev’s side in the civil war.
Last Thursday, the IMF’s chief spokesman, Gerry Rice, claimed in a press conference that “the authorities [in Kiev] have demonstrated a strong commitment to reforms. They have implemented, as you have seen, last week a set of prior actions that in many respects breaks from the past and tackles issues that were once considered taboos.”
Read the full article, with accompanying charts and photos, at the website link above.
