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
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.
