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IMF Must Consider Consequences for Poor and Social-Political Stability in Ukraine April 30th, 2014
IMF Reputation and Prospects for 2010 Reforms at Stake: Oblates join call for the IMF to consider the impact of their loan conditions on the people of Ukraine
Today, the IMF’s Executive Board of Directors is scheduled to review a $16.8 billion loan for Ukraine, which was endorsed by IMF staff last week. The IMF-Ukraine deal will impact the future of both Ukraine and the IMF.
The IMF deal comes with several conditions, including a move to a flexible exchange rate. Ukraine, with IMF assistance, made this change in February 2014. This has led to a 29 percent drop in the value of the Ukrainian hryvnia – making it even more difficult for Ukraine to pay its debt. Unfortunately, the IMF deal does not include any debt relief or “haircuts” – requiring creditors to accept a loss. Instead, the debt burden will carried by Ukraine’s citizens, almost a third of whom already live in poverty, according to an April 2014 UN Report.
“IMF-Ukraine negotiations have neglected the consequences for the citizens of Ukraine, and in this vein have disregarded how loan conditions will impact political and social stability in Ukraine” said Jo Marie Griesgraber, the Executive Director at New Rules for Global Finance, a DC-based NGO that pushes for responsibility in global financial institutions. “This is short-sighted and we strongly urge the IMF Executive Board to take this into consideration.”
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Broad-Based Coalition of Policy Experts Urges Congress to Pass IMF Reforms March 11th, 2014
Ukraine Economy and US Leadership at Stake
190 policy experts, business and academic leaders, and former Senate-confirmed appointees who had oversight responsibilities for organizations like the International Monetary Fund (IMF) and World Bank yesterday delivered a unified message to Congress: promptly enact IMF quota reform legislation. Fr. Seamus Finn, OMI signed the letter on behalf of the Missionary Oblates of Mary Immaculate. The Oblates have long supported New Rules for Global Finance, which works for fundamental reforms at the IMF.
The broad-based bipartisan letter to Speaker Boehner and Majority Leader Reid comes at a time when Congress is considering a $1 billion bilateral emergency assistance package for Ukraine to help the country stabilize its economy during its crisis with Russia. Senate Foreign Relations Committee Chairman Robert Menendez (D-NJ) and Ranking Member Bob Corker (R-TN) displayed the foresight and joint leadership to respond strongly to the Ukraine crisis by introducing the Ukraine relief bill, which includes the IMF quota reform legislation. Ukraine is also seeking IMF assistance directly.
Treasury Under Secretaries Tim Adams, David McCormick, David Mulford, and Jeffrey Shafer, and five IMF Executive Directors that served under Republican Administrations, among other former senior government officials, support the IMF reform legislation. “The IMF has played a crucial role in the global approach to recent financial crises and in navigating the world economy through severe threats. While the United States is on a path to recovery, threats remain…and the IMF has been called upon to support reform in Ukraine. In times like these, a financially strengthened and reformed IMF is in the U.S. interest,” notes the letter.
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Civil Society Organizations Engage IMF on Governance Reform September 29th, 2009
On September 8, 2009, representatives from civil society organizations (CSOs) met with the IMF Executive Board in an informal seminar at Fund Headquarters to discuss CSO recommendations on IMF governance reform. New Rules for Global Finance is coordinating the consultations, known as the Fourth Pillar Process. The Missionary Oblates, an active member of New Rules, was represented at the meeting by Seamus Finn, OMI.
The IMF just published an article about the consultation which is available in English, French and Spanish:
Demand for a Globally Negotiated and Increased SDR Funding Without Conditionalities June 3rd, 2009
Stop increased funding to the IMF which only makes it a stronger enforcer of developed country restrictions through conditionalities.
NGOs Oppose Nearly 100-Billion-Dollar Pledge to IMF
WASHINGTON, May 31 (IPS) – A broad coalition of civil society groups, as well as some U.S. lawmakers, are fighting what they call a “blank cheque” from the U.S. to expand funding for the International Monetary Fund (IMF).
On May 22, the Senate passed a 91.3 billion-dollar-wartime spending bill that included 108 billion dollars for the Washington-based Fund. The bill will now have to be reconciled in a conference committee between the Senate and the House of Representatives whose own version omitted any IMF funding. The funding was the U.S. part of a larger package agreed by the G20 leaders at their April meeting in London, where they pledged to provide 1.1 trillion dollars in additional funding to the IMF.
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