Inner City Press -- Investigative Reporting From the Inner City to Wall Street to the United Nations

IMF Consumed in Greek Fire, Dodges on Romania, Pakistan, Sri Lanka and Rwanda

UNITED NATIONS, May 6 -- With the International Monetary Fund's deal with the Greek government being followed, so far, by five deaths in protests, the IMF's fortnightly press briefing on Thursday not surprisingly focused on Greece. IMF spokesperson Caroline Atkinson emphasized that the austerity moves were the decision of the government, not the IMF. She promised a press availability by Dominique Strauss-Kahn after the IMF board's meeting on Sunday, on which phasing of the Fund's second largest program ever will be decided and announced.

That non-Greece questions were asked was met with surprise, and Ms. Atkinson answered few of them. Inner City Press submitted four questions, only two of which were allowed. Neither question was answered.

One question, on Pakistan, was Greece related in that experts have predicted violent reactions. Inner City Press submitted this question:

"Greece tie-in: In Pakistan, experts say that the govt has not prepared the public for the value added tax, that "the taxpayers... could resort to agitation and may even close down markets." What does the IMF say about VAT, the government's preparing of the people for it, and possibility of more IMF related violence?"

Also with an added Greek tie-in, to try to get an answer, Inner City Press submitted this, which was read out:

"Related to Greece if you are requiring that: in Romania, is IMF prepared to lift the country's budget deficit cap? How is the IMF's approach to Romania impacted by events in Greece?"

On this, Ms. Atkinson said that since there are negotiations -- in fact, the IMF mission is staying two extra days -- she would not comment. Then, generically, she said that IMF decisions are always impacted by other events, as well as being country specific. But of course!

On Sri Lanka, Inner City Press asked "is the IMF waiting for the so called mini budget for the rest of 2010 before considering the next tranche, and what does the IMF res rep [Koshy Mathai] mean by 'cutting inefficient expenditures'?"

It would seem important for the IMF to spell out or define this last, but Ms. Atkinson did not. Perhaps some later written response will arrive. One was promised to the last of the questions which Inner City Press submitted, which for some reason was mediated or edited by IMF staff.

Greece on fire, IMF not shown

Ms. Atkinson said, there is another question coming through, although I will have to answer it afterwards. Without attribution, she read out "On Rwanda, what is the status of the IMF's consideration of a Policy Support Instrument?" She then said that she did not know.

  In Kigali, IMF resident representative Dmitry Gershenson was quoted two days ago as having agreed to the PSI. And in Sri Lanka, res rep Koshi Mathai's statements remain unexplained.

To come back to Romania, the question Ms. Aktinson read out but would not answer, Reuters has already quoted sources that the deficit budget cap will be lifted. While the details may have to be worked out, wouldn't it seem important, including to "support, or I mean fight, contagion," to make clear that the IMF is at least temporarily showing flexibility to Greece's neighbors? Watch this site.

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