From the International Monetary Fund press release:
The Executive Board of the International Monetary Fund (IMF) today approved a two-year Stand-By Arrangement (SBA) for Ukraine. The arrangement amounts to SDR 10.976 billion (about US$17.01 billion, 800 percent of quota) and was approved under the Fund's exceptional access policy. The authorities’ economic program supported by the Fund aims to restore macroeconomic stability, strengthen economic governance and transparency, and launch sound and sustainable economic growth, while protecting the most vulnerable.
The approval of the SBA enables the immediate disbursement of SDR 2.058 billion (about US$3.19 billion), with SDR 1.29 billion (about US$2 billion) being allocated to budget support. The second and third disbursements will be based on bi-monthly reviews and performance criteria, and the remainder of the program period will be subject to standard quarterly reviews and performance criteria.
(ht Eddie Wineland)
fyi - Rickards called this
ReplyDeleteAw, come on...everyone has been watching/talking about SDR's as a global currency for years now.
DeleteThere's nothing earth shattering in Rickards "call".
He sure did. Among many things he's been correct about!
ReplyDeleteLet's see. A quasi-world government agency taxes bankrupt nations, who in turn tax their bankrupt people - all in fiat currencies not worth a bucket of spit. What could go wrong?
ReplyDeleteI doubt Lagarde could balance her own checkbook, but here she is handing out loot she didn't earn to bail out corrupt governments from their own stupidity. Moral hazard, anyone?
I wonder if the IMF rec'd the missing Ukrainian gold?
DeleteThe SDR program was reasonably dormant until the IMF approved a US$250 Billion General SDR Allocation in 2009 (their small part in ‘helping out’ with the global financial crisis ) http://www.imf.org/external/np/sec/pr/2009/pr09283.htm
ReplyDeleteIt is interesting that Jim Rickard's is raising the point in his recent book that due to central banks being tapped out, IMF SDR’s may be used for the next financial meltdown. Looks like Lagarde has found a mini crisis in Ukraine as a training and preparation ground.
Unleash the economic hitmen!
ReplyDelete