By
Matthew
Russell Lee
UNITED
NATIONS, May
15 -- When the
International
Monetary Fund
run by Christine
Lagarde
reviews the
economy of
France and its
banks, what
does it say?
In
a so-called
Article IV
consultation
report issued
under embargo
today, the IMF
opines that as
"credit demand
picks up, the
ability of
French banks
to provide
financing to
the economy
could be
constrained.
This risk can
be mitigated
by
securitization of
bank credit."
Nevermind that
it was
securitization
without
safeguards
that triggered
the global
predatory
lending
financial
meltdown in
the first
place.
The IMF report
is full of
praise for
Francois
Hollande's new
right-leaning
policies, for
example: "We
take note of
the renewed
emphasis on
making the
enterprises
the engine of
growth. Cuts
in taxes and
social
security
contributions
will enrich
the employment
content of
growth and
help
enterprises
rebuild their
competitive
capacity,
provided they
are used to
boost
investment.
And the
simplification
shock is
gaining
strength
through an
approach that
is well
structured and
promises to
deliver
meaningful
gains for the
private
sector."
Will this praise
be borne out?
If French
banks do more
securitization,
who will be
helped, and
who hurt? And
what would
Lagarde's IMF
say? Are there
any safeguards
in
place?
Who's running
for political
office in
France?
Back on May 8,
while Ukraine
and Greece
were the
subjects of
the first six
questions
taken at the
International
Monetary
Fund's
briefing, the
IMF impacts
countries all
over the
world. Inner
City Press
submitted five
questions --
on Morocco,
Madagascar,
Pakistan,
Bosnia and
Ghana -- the
last two of
which were
read out and
answered
during the
briefing. Video here,
filmed from
IMF webcast
while at UN
Security
Council
stakeout
On
Ghana, Inner
City Press
asked: the
Secretary-General
of the Trades
Union Congress
Kofi Asamoah
spoke out on
May Day
against the
government
seeking an IMF
program. What
does the IMF
make of it,
and would the
IMF consult
with such
opponents if a
program were
requested?
IMF
spokesperson
Gerry Rice
said that
Ghana has yet
to formally
request a
program -
there is a lot
of discussion
in the country
about it,
though. The
IMF Board
after its
discussion of
the Article IV
review will
have a press
release in due
course. He
added that the
IMF speaks
with a range
of people, and
has spoken
with the
Trades Union
Congress in
the past.
On
Bosnia, Inner
City Press
asked what
steps would
the IMF
require to
unfreeze the
next tranche
of its
stand-by
program? Does
the IMF have
any comment on
the
Federation's
May 6 auction
of 6-month
treasury
bills?
Rice
said the fifth
review was
completed; the
decision by
the Parliament
to delay
decisions
including
excises on
different on
tobacco
products has
delayed
completion of
the staff
review. To go
forward, full
implementation
of the prior
actions is
needed.
Inner
City Press
also asked:
In
Pakistan, PTI
Information
Secretary KPK
and MNA Ayesha
Gulalai has
said, “it is
very
unfortunate
that
Pakistan's
budget is
being prepared
by the IMF in
Dubai..
instead of
taxing the 4
million
wealthy
identified by
the FBR,
burden is
being passed
on to the
already
burdened
masses.” What
is the IMF's
response?
On
Madagascar,
when George
Tsibouris on
May 6 said the
government
agreed to
"address the
issue of fuel
price
subsidies over
time," can you
be more
specific on
how much time
the IMF
envisions?
Also, can the
IMF be more
specific about
what is
referred to by
"creating a
level playing
field for the
private
sector"?
While
the Managing
Director is in
Morocco, can
you answer if
Western Sahara
is included by
the IMF in
Morocco's
data, and what
impact the IMF
believes the
Western Sahara
issue has on
Morocco's
economy and
economic
prospects?
This
last one,
Inner City
Press
also asked two
weeks ago,
and again more
recently on
connection
with the IMF's
Ukraine
program. Watch
this site.
, 
