Wednesday, March 26, 2014

Senate Reverses Course - Drops IMF Reforms from Ukraine Aid Bill

In the latest news on this topic, the US Senate is going to drop the IMF reforms out of its bill to provide loan assistance to the Ukraine. The US House apparently was not going to budge on this issue. Below are a couple of links to articles on this latest news. Once a final bill is passed, we will review how this may impact what we are watching here (anything that could trigger major monetary system change).

Below is a quote from the first article linked above:

"The tussle in Congress over reforming the IMF has threatened the unified message officials in Washington had hoped to send to Russian President Vladimir Putin and those responsible for the invasion of Ukraine. And the administration did not hide its disappointment Tuesday afternoon over the removal of the IMF language. “We are deeply disappointed by the news that Republican opposition has forced the Senate to remove the [IMF] reforms from the Ukraine assistance package,” said Treasury Department spokeswoman Holly Shulman."

my added comment: This confirms what we noted in an earlier blog post. The failure to get the IMF reforms approved is a major disappointment for IMF supporters. It also is likely a setback in terms of perception for the IMF. It indicates a lack of confidence in the IMF by the US House. 

Since this is an election year in the US, it seems doubtful the House will change its stance on this unless some kind of major financial crisis arises. We will comment more on this once a final bill is passed by Congress.


for a more detailed look at how the IMF is organized and how the proposed reforms would change the IMF,
go here.

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