MP: new policies of the IMF loans will show a selective approach

MP: new policies of the IMF loans will show a selective approach

The decision on amendments to the rules of the International monetary Fund, which for the change in policy lending to countries in arrears to creditors, a politically motivated, believes state Duma Deputy Oksana Dmitrieva.

MOSCOW, 7 Dec. The decision of the International monetary Fund (IMF) for policy lending to countries in arrears to creditors, which can be made on Tuesday, December 8, will point to the political motivation and selectivity of the Fund in relation to the countries, believes the Deputy of the state Duma from fraction “Fair Russia” Oksana Dmitrieva.

The rules of the IMF has proposed the approval of its default on sovereign debt, if it in good faith, but unsuccessfully tried to negotiate with creditors. If the IMF will reform before the proposed date of default of Ukraine on duty and the Director will agree to apply it to previously signed contracts, Russia will lose the sovereign right of the creditor to stop the country’s finances by the Fund due to the insolvency of the program.

“I think so, the Fund may make such a decision. We know that many decisions of the IMF is politically motivated. This would mean that the countries that will receive assistance from the IMF, will be to selectively repay the debt from some countries, and some — not to repay,” said Dmitriev.

According to her, this means electoral tactics, which is contrary to traditional international principles of settlement of the debt. “Creditor countries were a particular policy, concluded agreements on debt restructuring on behalf of all the creditors, i.e. have a consolidated position,” she said, citing the example of the IMF, the London and Paris clubs of international creditors.

“This means that the IMF refuses a consolidated position in relation to the debtor countries. They can continue to have a differentiated brand policy in respect of debt of different countries,” said Dmitriev. “Russia in this situation (have — ed) to understand, and continue other countries with a different political conjuncture will choose whom they will pay and who will not”, she concluded.

Russia had previously offered Ukraine to restructure the debt by $ 3 billion, which the country must pay in December of the current year, allowing it to repay 1 billion in 2016-2018, subject to the provision of guarantees for it from the authorities of the United States or the EU, or one of the international financial institutions. This year, Ukraine proposed to pay only the interest. The Finance Ministry on Saturday confirmed the intention to sue Ukraine in case of default on her December 20, in full of the obligations on the debt.