Archive for August 18th, 2010

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Trade Unions condem the IMF in Ukraine

August 18, 2010

Well dear readers, I have never been a Union Member in my life……although I have nothing against them, as they do serve a purpose……sometime well and sometimes not so well……but what do you think to this little tirade?

Associated Press

Ukraine’s trade unions have accused the International Monetary Fund of unlawful interference in domestic policy and are demanding to review the conditions of a $15 billion crisis loan.

Last month the IMF approved the loan over 2 1/2 years to help Ukraine’s heavily industrialized economy recover from the global financial crisis.

The conditions oblige Ukraine to double gas prices for households, to raise the women’s retirement age from 55 to 60, and to increase the minimum period of employment to qualify for a state pension from 5 to 15 years, among other things.

The Ukrainian Trade Unions Federation said in a website statement Monday that the terms of the loan are unlawful and “cynically interfere in a sovereign state’s domestic policy.

I have to say, although I have not borrowed from a bank in well over a decade for anything, the last time I went, it was they and not I that set the conditions for the loan and it was I who decided to accpet them…..or not.

Ukraine could very well have done what Hungary did and broke off negotiations with the IMF, choosing to tough it out alone.  It may well be, as was the case in the tiger economies a few decades ago in eastern Asia, Hungary has chosen wisely and Ukraine has not.  Those tiger economies who took IMF assistance took much longer to emerge and recover than those that did not during their times of crisis.

Time will tell.

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