When the IMF victim All parties made arduous effort to prevent a Greek default in meeting their obligations of debt owed to the International Monetary Fund and with good reason is that this result will be serious consequences, not on Greece and Europe, but also on the global financial system as well.
The status of «lender a preference», enjoyed by the Fund, highlighting its ability to lend to countries, which face considerable difficulties, especially when all other lenders have frozen or seeking salvation. However Medallion APP experiences this ability to act as a lender of last resort, an unprecedented threat.
Although the lender put a preference not a formal legal concept, manifested in the form of a general acceptance that the IMF gets his dues before any party other lending almost. In the case of debtors they failed to deliver benefits, they have to expect a lot of pressure from a lot of Al187 Member State of the Medallion APP Fund. Examples of non-performing countries in debt but this is limited to the Fund on the fragile and failed, particularly in Africa countries.
We have managed the International Monetary Fund to work as a man of extinguishing the world, it is ready to enter a burning building when others pay all backs. The IMF Fund’s interventions have been repeatedly important to the stability of national financial crises and reduce their effects on other countries.
At a time not so long ago, it was not appropriate for the Fund to engage in large-scale lending to the developed economies of Europe operations, and the last time where it was before the euro crisis in the seventies of the last century, with the United Kingdom. What was notified of the Fund imagined that the fear of non-refundable financial dues of a European borrowers. However, Both things take place in the Greek crisis.
Most of this Medallion APP, which holds the unprecedented nature of the Greek situation, that other lenders, the European Central like the World Bank, and other European institutions, in a position to help to supply Greece with money, you need to pay dues to the International Monetary Fund; but this will happen only in case An agreement was reached on the policy package to be implemented in a manner identical and are to continue.
If Greece failed to pay its debts to the International Monetary Fund, it will find itself have been influenced by their access to other funds, in the case strongly, negatively, including emergency cash support from the European Central Bank, which is the support that keeps its Secret Millionaires Club banks apart from financial difficulties. As to what would result from sharpening in the credit crisis of the country will push the economy toward a deeper recession, increasing unemployment alarming crisis already, and accelerate the pace of capital flight, and makes action to adjust the capital inevitable, and perhaps more likely, forcing the country to abandon for Europe’s single currency.
Also, the IMF would be in a much worse; the Greece’s inability to pay its debts will be the largest issue of non-payment of its kind since the establishment of the Fund in 1945. Will This internal and external criticism at the same time, that the Fund has been exploited by European politicians , which aggravates existing concerns about the slow progress in the reform of the old management system, representation, and a number of Secret Millionaires Club practices, including «tradition» to be President of the Fund is always a European. And it will make this fund more reluctant to lend aggressively in other crises.
Fortunately, there is a possibility to avoid such a fate, in the case of Greece it succeeded in completing the negotiations that were painful for all parties concerned. If this does not happen, we will have to add the reputation of the IMF to the list of victims of the crisis has already caused the horrific suffering of millions of Greek citizens.