“They are making the same mistake they were making in 97,” Stiglitz, a former chief economist at the World Bank, told reporters in Paris on Tuesday, referring to loans given to Iceland, Pakistan and Ukraine to cope with the financial crisis.
From Unian.net
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“The interest rates for the IMF loans are too high and the monetary policies imposed on crisis-hit countries are contractionary in contrast to the expansionary economic policies adopted in Britain or France, he said”
Iceland pays 5%, the IMF can get money from the US for .5%.
4.5% for the IMF, that’s a good deal, maybe they should call themselves an investment bank or hedge fund.
Always nice to see your “friends” kick you when you’re on the ground.