Tuesday, August 24, 2010

I.M.F. (International Money isn't Free)

Those of you who read the last related article know that Pakistan got hit horribly by a monsoon of epic proportions. Clearly they'll need help, we just hope it comes quick enough. Below is an excerpt from a BBC article concerning how the IMF is in talks of lending the country 11 billion dollars. Now...that is a lot of money, but there are two things that concern me.

1. Why would you ever tell someone that they have to pay you back after such an atrocity.
2. If lending someone 11 billion dollars is actually feasible, why do you even need every single penny back?

Officials from Pakistan are holding talks with the International Monetary Fund to discuss its $11bn loan package in the wake of the devastating floods.

They said that although the UN had raised 70% of the $460m (£295m) needed for emergency relief, many people had yet to receive any help.
Mr Ahmed said Pakistan's budget and macroeconomic prospects would have to be reviewed following the floods, which UN officials estimate have left about 1,600 people dead and affected another 16.8 million.

Read the rest of the article here

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