IMF's Spain Report Says Banks Can't Sell Off Foreclosures Fast Enough, Bankia Echo

By Matthew Russell Lee

UNITED NATIONS, February 20 -- What's an impediment to Spain's "financial reforms," according to an International Monetary Fund report under embargo until 10 am today? They can't sell of foreclosed assets fast enough. The IMF report says, at page 44:

"the liquidation of foreclosed assets in 2013 has been below
expectations due to worse-than-expected liquidity and prices in the real estate market, slow implementation of SAREB’s commercial strategies, and a difficult start for the servicing arrangements."

    So the banks are foreclosing on and repossessing "assets," but then can't flip them fast enough. Which banks? The IMF's last annual report on Spain, released last August, ran some 66 page but mentioned Bankia only three times, all of them in financial tables.

But as Inner City Press asked the IMF at its briefing on July 11, Managing Director Christine Lagarde was on the witness list of the Spanish political party Union, Progress & Democracy, which alleged fraud in the weakening and bail out of the bank.

The IMF answered Inner City Press' questions from that day on Sri Lanka, and more recently on South Sudan.

On Sri Lanka: "The one on Mr. Singh is accurate. The Islandand Daily Mirror coverage of Mr. Mathai's talk was much better in our view and may be helpful to you."

From the IMF's transcript of Inner City Press' question:

I have a question on South Sudan. We'll jump to Africa. I think we'll move off Europe for awhile. On South Sudan:

“How does the IMF view the recent firing of the vice president and ministers and non-passage of the petroleum act? What impact may this have?”

Thanks for that question. The effects on both countries, both South Sudan and Sudan, are likely to be quite severe, given the rundown of their reserve buffers since 2011, and a progressive build up of economic and social tensions. We can't give you a precise analysis of what these firings mean in terms of the severity of the economic dislocations in South Sudan and Sudan, but we basically hope that both countries will implement their recent agreements, given their importance for regional peace and economic stability. We also think that implementing these agreements will help relieve the economic pressures that have been building up since oil was shut down there in January of 2012.

   And on the even worse problems in South Sudan this year? Inner City Press asked the IMF two week ago - but still no answer.  
    Watch this site.

   

IMF's Spain Report Only Thrice Mentions Bankia Bailout, Lagarde Question UNanswered, Unlike South Sudan and Even Sri Lanka

By Matthew Russell Lee

UNITED NATIONS, August 2 -- The International Monetary Fund's annual report on Spain, under embargo until 10 am today, runs some 66 page but mentions Bankia only three times, all of them in financial tables.

But as Inner City Press asked the IMF at its briefing on July 11, Managing Director Christine Lagarde was on the witness list of the Spanish political partyUnion, Progress & Democracy, which alleged fraud in the weakening and bail out of the bank.

The IMF answered Inner City Press' questions from that day on Sri Lanka, and more recently on South Sudan.

On Sri Lanka: "The one on Mr. Singh is accurate. The Island and Daily Mirror coverage of Mr. Mathai's talk was much better in our view and may be helpful to you."

From the IMF's transcript of Inner City Press' question:

I have a question on South Sudan. We'll jump to Africa. I think we'll move off Europe for awhile. On South Sudan:

“How does the IMF view the recent firing of the vice president and ministers and non-passage of the petroleum act? What impact may this have?”

Thanks for that question. The effects on both countries, both South Sudan and Sudan, are likely to be quite severe, given the rundown of their reserve buffers since 2011, and a progressive build up of economic and social tensions. We can't give you a precise analysis of what these firings mean in terms of the severity of the economic dislocations in South Sudan and Sudan, but we basically hope that both countries will implement their recent agreements, given their importance for regional peace and economic stability. We also think that implementing these agreements will help relieve the economic pressures that have been building up since oil was shut down there in January of 2012.

But on Bankia and Lagarde, nothing.

That process led Bankia to put its subsidiary City National Bank of Florida up for sale. BankUnited, which Inner City Press covered last week, was said to be among the suitors, but Chile's Banco de Credito e Inversiones ended up with the winning bid on May 24, for $882.8 million.

Analysis now proceeds on that proposed acquisition. Until July, Inner City Press used and cited SNL Financial in stories such as these. A request to continue, and specifically about BankUnited and this, is pending before Christina M. Twomey of SNL's Public Relations. We hope to have more on this - and on Larry Summers and the Fed. Watch this site.

   

Murky in Egypt, IMF Claims Transparency as Lagarde Summoned on Bankia, Stonewalls on Sri Lanka & Serbia, Bolivia Lawsuit Threat

By Matthew Russell Lee

UNITED NATIONS, July 11 – The International Monetary Fund on Thursday claimed no one could accuse them of “lack of candor or transparency.” Then IMF spokesperson Gerry Rice in his biweekly embargoed briefing said that in Egypt the IMF remains in touch with unnamed technical experts.

But an Inner City Press question about Bolivia's Evo Morales saying his country might sue the IMF for damages went unanswered.

Rice said Managing Director Christine Lagarde has written back to the president of Cyprus, but offered only paraphrased pablum about welcoming the president's determination to stay on the path of sustainable growth.

An Inner City Press question about Lagarde being summoned as a witness in a court case about the failure of Bankia by the Spanish political party Union, Progress & Democracy likewise went unanswered. What was that again, about candor and transparency?

  Euphemisms like electrical price “adjustment” was applied by Rice to Pakistan, but a Press request to explain what the IMF's resident representative in Serbia Bogdan Lissovolik meant in proposing a “solidarity tax” went unanswered.

  And in a visit to Sri Lanka, IMF Asia Pacific chief Anoop Singh was quoted by the government offering fulsome praise. There are obvious Sri Lanka issues, as the Commonwealth is finding. But these questions, the IMF does not answer. Their last answer to Inner City Press on Sri Lanka, from Gita Bhatt:

Matthew:   We have nothing more to offer than what I mentioned in my last email to you—along with the latest press release I attached.  A bit puzzled by your question—and not sure where you are headed.   An IMF-supported program could have helped Sri Lanka build up their reserves and, more importantly, boost market confidence. The mission and the authorities explored the possibility of a new IMF program designed to build on Sri Lanka’s achievements under the SBA. Productive discussions took place on a number of issues, including further fiscal and related reforms that would consolidate and extend these achievements.   However, the authorities announced that they were not continuing negotiations with us since they wanted our assistance only if it was in the form of budget support, which we were not able to provide. From our side, we had some concerns about the budget, and in particular about weak government revenues, that would in any case have required substantial further discussion. The mission and the authorities will stay in close touch and continue the close partnership between Sri Lanka and the IMF
. Watch this site.

  

As IMF Briefs on Spain, Former Chief Rato Pushed Bankia to Bailout, Safeguards?

By Matthew Russell Lee

UNITED NATIONS, July 27 -- When the International Monetary Fund's mission chief for Spain James Daniel held an embargoed (until now) press call Friday morning, he was asked about the flame out of Bankia, which was chaired by former IMF chief Rodrigo Rato.

  While not followed up on the call, Rato's and now the IMF's role raise questions about the need for safeguards given the revolving door through which former IMF officials pass. Can former IMF-ers benefit from bail outs or "programs" of the the IMF?

 The story of Bankia and its IPO is an ugly and extensive one. The global co-ordinators on the deal were Deutsche Bank -- which, as Inner City Press has noted, has a former official now on the Federal Reserve Board -- J.P. Morgan, Bank of America Merrill Lynch, and UBS. 

  The retail underwriters on the retail tranche were Bankinter, Sabadell and Barclays, now of LIBOR fame.

L'affaire DSK garnered worldwide media coverage. But what of financial scandals involving former IMF officials? Watch this site.

IMF Ignores Spanish Bankia Protests, No Answer on Sudan or Post-Coup Mali

By Matthew Russell Lee

UNITED NATIONS, May 17 -- Amid taxpayers' bailout of banks, opposed most recently by social movements in Spain with regard to Bankia, the International Monetary Fund praises the bailouts and ignores the opposition, as it pretends not to do for example in Egypt.

  On May 17 Inner City Press submitted to the IMF's biweekly briefing this, as one of four questions:

"On Spain, does the IMF have any views of the moves to organize a run on the troubled Spanish lender Bankia SA?"

  The sum total of what IMF deputy spokesman David Hawley said during the briefing, embargoed until 10:30 am, was that Managing Director Christine Lagarde had praise the actions of the Spanish authorities, which included a 40% nationalization of Bankia. There was no response to the protests.

  Inner City Press also asked, so far without answer:

What is the status of IMF programs in and reviews of Mali and Guinea Bissau, given coups in each country?

In Kosovo, has the 107 million Euros been formally committed, or are additional steps required of the Kosovar authorities?

Again, what is the IMF doing on or about the Sudan - South Sudan oil transfer fee dispute, and about any debt relief for Sudan?

  Two weeks ago, while lead IMF spokesman Gerry Rice did answer one of Inner City Press' questions, after the briefing another IMF spokesperson promised a substantive answer on the Sudan oil transfer fee question, which Inner City Press has sought since directly asking the IMF's Masood Ahmed at the IMF's Spring Meeting in April. Still, it has not been received. Watch this site.