By Matthew Russell Lee
UNITED NATIONS, July 31 -- In the aftermath of International Monetary Fund policies in Greece and Cyprus, the IMF on Wednesday morning pumped out relentless if unrealistic good news.
Greece is moving to lay off 4000 civil servants this year and 15,000 by the end of 2014. Cyprus has decreed 47/5% losses on some bank accounts; Cypriot finance minister Haris Georgiades said thus "the banking sector is on its way to being stabilized" and "the country remains committed to meeting all bailout targets."
On the IMF's Cyprus press call, 7 am Eastern time in the US, mission chief Delia Velculescu was asked, if the country's program next goes to the IMF Executive Board September 20 with her report finalized earlier in the month, how will it take into account new data?
The question arises in the context of the IMF admitting the the "multiplier" of effects it used in Greece was inaccurate. Velculescu quickly said all will go well -- then promised a transcript of the the call, but only tomorrow or even Friday. Some sense of urgency.
Of the Greek layoffs, an IMF report made public 8 am today says, Public administration reform has lagged far behind and the authorities are beginning to address delays... progress in completing staffing plans and placing public sector employees in the mobility scheme has been very slow."
At the UN, Inner City Press has learned, outgoing President of the General Assembly Vuk Jeremic of Serbia intends to hold his final debate on a topic that is or should be relevant to the IMF: the credit rating agencies.
What has been done to reform them, after their shameful role in the subprime meltdown? It's the General Assembly that will be debating this. Watch this site.
