© Kim Kyung Hoon / Reuters
Current IMF policy forbids it loaning to countries that default on other governments. In 2013, Russian President Vladimir Putin and then Ukrainian President Viktor Yanukovich agreed Moscow would buy $15 billion in Ukrainian Eurobonds. After the first $3 billion, Russia decided not to buy the remaining $12 billion following the Maidan events, which resulted in the overthrow of Yanukovich's government.
Changing IMF's arrears policy would help "to avoid an outcome where Russia could hold the fund program hostage," Douglas Rediker, a fellow at the Peterson Institute for International Economics and former US representative on the IMF's board told the WSJ.
Comment: Which is exactly what Ukraine was hoping for. So rules are rules unless Russia is involved: Yatsenyuk threatens moratorium on $3bn debt to Russia - Ukraine bluffing?
The IMF appears to have wanted to amend its lending rules for a while. Anders Aslund, a senior fellow at the Atlantic Council, said the IMF initially wanted to ensure that China wouldn't be able to thwart IMF lending to member countries seeking bailouts as Beijing boosted loans in Africa and other countries.
The Ukrainian debt has become the catalyst.
Kiev has insisted that Moscow take a haircut on the loan like other creditors. The Kremlin has refused.
Last week, Ukrainian Prime Minister Arseny Yatsenyuk described the $3 billion loan as a Russian bribe to Yanukovich to stop the Association Agreement with the EU.
Russia's longstanding position is that Ukraine's debt should be classified as official intergovernmental.
"Ukraine's debt to Russia which is due to be redeemed in December of this year cannot be treated as a debt before private creditors, the debt has another status, it is official," said Russian Finance Minister Anton Siluanov repeating the Kremlin's position on Wednesday.
The IMF is an open tool of the zionist/neocon bankster bastards of the West.
If the IMF permits the nazi scumbags in the Ukraine to default on public debt owed to Russia, but loans the Ukie nazis $17.5 billion more (to go directly into the Western financial elites' and Ukie Oligarchs' pockets, with NOTHING for the Ukie peoples), maybe it's time for Russia to start the financial collapse dominoes falling in the West via it's own debt owed to the Western oligarchs of finance. This, as numerous economists have noted, would almost assuredly start the financial implosion of the derivatives casino that defines the banksters open plunder in the West, while not really dealing much negativity to Russia's own economic position, as the Western financial zio-fascists are freezing them out, anyway.
But if the Russkies are still (stupidly) wishing and hoping that they will somehow worm their way back into the good graces of the West, someday, then they are deluding themselves, or maybe even more accurately, are still being internally destroyed by traitorous agents of the West posing as loyal Russians. Russia has no immediate future in the West, and should accept that. Playing along with the financial neocon/zio-fascists of the West only brings Russia closer to their collective annihilation and dismemberment so long sought by the evil, greedy scum of the Earth that sits atop as the Western 'elites'. Best to start the Western derivatives implosion soon, as that might just be the catalyst for the disaster-based change that the Western powers need to experience, and deserve so richly.
Never gonna happen. Russia will play along, wishfully thinking that they will, eventually, HAVE to be accepted by the West sooner or later, never knowing that the zionist-neocons will NEVER stop in their attempts to destroy, dismantle and plunder Russia.
Only when the entire Western financial system, rotten to its core, is completely disrupted, and true financial hardship spreads quickly over the EU and the West causing the sheeples to finally realize they will STARVE unless they throw the bums out, will any chance for real change occur. Portugal currently is a prime example, as their attempt at peaceful, democratic change via open elections is eviscerated by their zionist-neocon rulers who simply say, "No" to the voting results seeking an end to 'austerity' that only benefits the financial scum at the top of the West.
Otherwise, Russia can expect a slow, painful 'death by a thousand cuts' from the West, when Russia could swiftly deal a 'death blow' to the financial oligarchs by the simple expedient of repudiating its debts to the West in a tit-for-tat measure, and moving on to the East and South, where its future really lies.
Again, never gonna happen.......