Ukraine Insolvent? The IMF Breaking Their Own Rules?!?

[Aman A.K.A. Ahamburger]

It appears Greece isn't the only small European country that is completely out of money.

IMF Violates IMF Rules, to Continue Ukraine Bailouts

The IMF, whose bailout operations are absorbed by the taxpayers in the member countries whenever a particular bailed-out nation defaults, announced on Friday, June 19th, that it will “continue to support Ukraine through its Lending-into-Arrears Policy even in the event that a negotiated agreement with creditors in line with the program cannot be reached in a timely manner.”

Though this new “Lending-into-Arrears” policy violates two IMF rules, it was justified by the IMF’s Managing Director Christine Lagarde on the basis of the Ukrainian government’s “continued efforts to reach a collaborative agreement with all creditors.”

....despite the fact that the IMF is violating two of the IMF’s own most-basic rules restricting its lending-authority — these rules are lending-restrictions whose purpose was to reduce the riskiness of the IMF’s lending, and so to minimize the amount that the IMF will be taking from taxpayers to fund its losses:

1: The IMF does not lend to nations at war — but Ukraine continues being at war against its former Donbass region despite the Minsk II ceasefire agreement; ceasefire violations, especially by the Ukrainian side, continue regularly.

2: The IMF does not lend to nations that are likely to default — but every independent source categorizes Ukraine as being virtually certain to default, and the only actual question regarding Ukraine is: when? The IMF’s answer: we’ll keep lending, building Ukraine’s public debt even higher, until our aim is achieved, and then we won’t — and that’s when the default will occur — the default will happen when we decide it will happen. It will happen when we will stop lying and saying that it won’t happen.

[Aman A.K.A. Ahamburger]

This is going to help the situation...Ukraine government in armed standoff with nationalist militia.

This would be part of that whole European far right thing that has been touched on. This isn't part of the Russian incursion in the East of the country, aside from the fact that Putin has been supporting the far right movements across Europe. Well, that and the fact that Russia has bases set up inside of the Ukriane waiting to strike...

[Aman A.K.A. Ahamburger]

The IMF continues to float the Ukraine even though it has been proven that Eastern Ukriane is a war zone. With another round of debt talks coming up to try once again to avoid a Ukrainian default, will the IMF be able to continue to ignore their own rules if another, different - yet related - conflict breaks out in the Ukraine?

Fears grow as Ukraine rightwing militia puts Kiev in its sights

At a thickly forested former youth camp west of Donetsk in war-torn eastern Ukraine, a military instructor is busy teaching hundreds of new recruits how to fire everything from machine guns to rocket-propelled grenades.

The new boys are lean and fit, anti-separatist and — in the instructor’s words — have “fire in their eyes”.

But this is not Ukraine’s regular army. The troops are members of Right Sector, the far-right group that evolved from among the most militant wing of the protesters who toppled Viktor Yanukovich, the country’s pro-Russian president, in its pro-democracy revolution last year.

The group is one of dozens of “volunteer” battalions that played a key role in halting advances by pro-Russian rebels a year ago, after the revolution ushered in a pro-EU leadership, when the long-neglected regular army was caught flat-footed.

But fears are growing that Right Sector — the only major volunteer battalion Kiev has not yet managed to bring under regular army control — could turn its fire on the new government itself.

Dmytro Yarosh, Right Sector’s leader, called late last month for a nationwide no-confidence referendum in President Petro Poroshenko. He was addressing a rally in Kiev of up to 5,000 Right Sector activists, angry over what they say is the government’s slow progress in fighting corruption and excessive concessions to Moscow as it attempts to reach a settlement over eastern Ukraine.

“We are an organised revolutionary force that is opening the new phase of the Ukrainian revolution,” Mr Yarosh told the rally.

[Aman A.K.A. Ahamburger]

A big surprise? Russia refuses to accept terms as Kiev finally secures debt write-off deal with creditors. Only as big of a surprise as on the day that the war was supposed to "end" in Eastern Ukraine, Deadly Luhansk ambush ends lull in east.

Talk about being stuck between a rock and a hard place: Kiev tries to broker a peace - that has already failed - and in doing so, Poroshenko's parliamentary coalition begins to crack because he loses his right wing support. Not only does he lose their support, the Right Sector starts a rally against the govt in Keiv, and now there is a Third death from that chaos. So now, broke, running on illegal aid from the IMF, Poroshenko has to fend off an attack from the Right, while trying to convince the "the nations of the free world" to stand together against Russian aggression in Ukraine. In other words, trying to convince a world that wants Russia to join to fight in the Middle East, to join and fight against Russia. Is it any wonder that the Islamic State has been expanding at such a rapid rate against the "allied" forces