Who in Ukraine will benefit from an IMF bailout?

Economists Michael Hudson and Jeffrey Sommers, in this informative interview with the Real News Network, said that most people in Ukraine will suffer, because the condition for an IMF loan will be lower living standards for a country already poor by European standards, higher taxes and fewer public services and a bankruptcy sale of the Ukraine’s rich farmland and other assets at bargain prices.

IMF loans never go to the people of the country receiving the loan.  They go to pay off the country’s creditors.  An IMF loan to a country is like a debt consolidation loan to a private individual.  In the case of Ukraine, the country’s creditors fall into two groups — the Russian Federation and its Gazprom natural gas company, to which Ukraine has billions of dollars owing and which no longer will sell Ukraine gas at a below-market price; and banks in western Europe and the United States, which have made billions of dollars in loans to the previous government.   Whichever group to which the IMF loans flow (I’m not betting on the Russian Federation), they won’t go to help ordinary Ukrainians.

Ukraine will then be in debt to the IMF, which will demand repayment by squeezing the money out of the Ukrainian people and by selling off Ukrainian national assets at bargain prices.  Rich Ukrainians may acquire some of these assets.  They will be the only Ukrainians who will benefit.

Hudson and Sommers pointed out that U.S. energy companies are planning for a disruption in Russian natural gas exports to western Europe, and building LNG (liquified natural gas) terms in U.S. ports so as to be able to sell gas in Europe.

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http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=11614  [the transcript]

https://philebersole.wordpress.com/2014/03/06/the-shock-doctrine-in-ukraine/

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