Suriname: IMF board approves 3-year, $688 mln program for Suriname

The International Monetary Fund approved on Wednesday a three-year, $688 million program for Suriname, with some $55 million enabled for immediate disbursing.

“The program aims to rebuild Suriname’s foreign reserves, IMF Managing Director Kristalina Georgieva said in a statement. “The authorities’ decision to move to a market-determined exchange rate will strengthen the economy’s resilience to external shocks. This step, together with the program’s catalytic effect on external financing, will address external imbalances and contribute to increasing foreign reserves to prudent levels.”

Read more at: IMF board approves 3-year, $688 mln program for Suriname | Financial Post

Suriname: Thousands protest against electricity, water price hike in Suriname

Suriname in turmoil: Desi Bouterse -Dictator turned President

For the second time in three weeks, thousands took to the streets of Paramaribo protesting against austerity measures from the Desi Bouterse led administration on Thursday.
Some protestors called for Bouterse to “go home” while others denounced price hikes for electricity and water.

The protest was organised by several worker’s unions and private sector organizations who have stated that harsher times are coming with another hike in the price of electricity coming in September this year and January 2017.

In a petition presented to speaker of the house, Jennifer Geerlings-Simons, the protestors claim that inflation has risen to 46 per cent, while the national currency is losing its value everyday due to an “incompetent monetary policy by the government”.

“Numerous public servants, pensioners, disabled persons and others who have become victims of the ongoing financial and economic crisis are serious financial problems and should be immediately compensated for the inflation”, protesters said in the petition.

Last week, the International Monetary Fund (IMF) approved a Stand-by Agreement of US$ 478 million to boost the government’s economic restructuring program amid a drop in commodity prices.

The IMF also announced that it will immediately disburse US$81 million as part of a two-year agreement.

However, Members of Parliament from the opposition voiced their anger in parliament on Tuesday, accusing the government of by-passing the legislative in its engagement with IMF to strike the loan agreement.

The restructuring program aims to strengthen Suriname’s public finances following a drop in prices for its principal commodities namely gold and oil.

According to the IMF the sustained drop in the prices of gold and oil has caused substantial external and fiscal deficits, and international reserves have declined significantly.

These negative external developments, combined with the closure of Suriname’s alumina refinery in late 2015, have pushed the economy into a recession. “Implementing the structural reform agenda is essential to ensure a prosperous future for Suriname,” the IMF said in a statement.



Read more: Thousands protest against electricity, water price hike in Suriname - News - JamaicaObserver.com

Greece says NO to austerity demands by Wall Street dominated financial sector and their IMF brainchild

The Greek No Vote has shown the rest of the EU that democracy is what counts and not the dictatorial rule of the Wall Street dominated global financial markets and its brainchild the IMF.

It will hopefully only hasten Europe's need to take a more independent route on a variety of issues, presently controlled by Trans-Atlantic financial and political forces.

Europe must choose for Greece, after all, aren't they one of us?
EU-Digest

Greece debt crisis: Tsipras announces bailout referendum

Is the party over for Greece?

Greece will hold a referendum on 5 July on a controversial bailout deal with foreign creditors, Prime Minister Alexis Tsipras has announced.

In a televised address, he described the plan as "humiliation" and condemned "unbearable" austerity measures demanded by creditors.

The Greek government earlier rejected the proposals, aimed at avoiding the country defaulting on its debt.

Greece has to make a €1.5bn ($1.7bn; £1.06bn) IMF debt repayment on 30 June.

In the speech, Mr Tsipras said: "These proposals, which clearly violate the European rules and the basic rights to work, equality and dignity show that the purpose of some of the partners and institutions was not a viable agreement for all parties, but possibly the humiliation of an entire people."

"The people must decide free of any blackmail," he added.

Read more: Greece debt crisis: Tsipras announces bailout referendum - BBC News

Pollution - Energy Sector: Fossil fuels subsidized by € 8.97 m a minute, says IMF - by Damian Carrington

Fossil fuel companies are benefiting from global subsidies of $5.3tn ( € 4.7 tn) a year, equivalent to € 8.97m a minute every day, according to a startling new estimate by the International Monetary Fund.

The IMF calls the revelation “shocking” and says the figure is an “extremely robust” estimate of the true cost of fossil fuels. The $5.3tn subsidy estimated for 2015 is greater than the total health spending of all the world’s governments.

The vast sum is largely due to polluters not paying the costs imposed on governments by the burning of coal, oil and gas. These include the harm caused to local populations by air pollution as well as to people across the globe affected by the floods, droughts and storms being driven by climate change.

This ‘Shocking’ IMF revelation also finds $5.3tn ( € 4.7 tn) subsidy estimate for 2015 is greater than the total health spending of all the world’s governments 

Read more: Fossil fuels subsidised by $10m a minute, says IMF | Environment | The Guardian

Greece: Defiant Greece sets itself on collision course with European partners - by Deepa Babington and Renee Maltezou

Leftist Prime Minister Alexis Tsipras laid out plans on Sunday to dismantle Greece’s “cruel” austerity programme, ruling out any extension of its international bailout and setting himself on a collision course with his European partners.

In his first major speech to parliament since storming to power last month, Tsipras rattled off a list of moves to reverse reforms imposed by European and International Monetary Fund lenders: from reinstating pension bonuses and cancelling a property tax to ending mass layoffs and raising the mininum wage back to pre-crisis levels.

Showing little intent to heed warnings from EU partners to stick to commitments in the 240 billion euro bailout, Tsipras said he intended to fully respect campaign pledges to heal the “wounds” of the austerity.

Greece would achieve balanced budgets but would no longer produce unrealistic primary budget surpluses, he said, a reference to requirements to be in the black excluding debt repayments.

“The bailout failed,” the 40-year-old leader told parliament to applause. “We want to make clear in every direction what we are not negotiating. We are not negotiating our national sovereignty.”

In a symbolic move that appeared to take direct aim at Greece’s biggest creditor, Tsipras finished off his speech with a pledge to seek World War II reparations from Germany.

Tsipras ruled out an extending the bailout beyond Feb. 28 when it is due to end, but said he believed a deal with European partners could be struck on a so-called “bridge” agreement within the next 15 days to keep Greece afloat.

Read more: Defiant Greece sets itself on collision course with European partners - The Globe and Mail

EU: Austerity is not working around Europe - Time for change?

The Guardian notes in an editorial that at a stroke, the Greek general election of 2015 has destroyed the post-recessionary political norms and assumptions of Greece and shaken those of the European Union to the core as well.

For six years, Greeks have protested against harsh eurozone disciplines, but the nation’s eventual, though resentful, readiness to put up with the resulting hardships has been a source of stability. In Sunday’s vote, however, Greek patience finally snapped, particularly among the middle classes, ousting the pro-austerity government of New Democracy and electing the anti-austerity left-coalition Syriza in its place.

As a consequence, the past is no longer much of a guide to the future, at least in Athens, and perhaps elsewhere in Europe.

For the complete editorial  from the Guardian click here 

Global Economy: Grim global growth outlook says World Bank

The World Bank has cut its global growth forecast. In its bi-annual report, the predicted global growth will be 3 percent for this year and 3.3 for 2016.

The report emphasises that  the economy is “running on a single engine. The American one. This does not make for a rosy outlook.”

In June last year the World Bank stated growth would reach 3.4 percent for 2015 and 3.5 percent next year.

The Bank adds that the low oil prices may help importing countries such as India, which is expected to grow by some 7 percent next year.

On the other hand oil producers like Russia look set to loose out. The Russian economy is on course to contract by 2.9 percent this year.
The recovery, says the report, is at best “sputtering” along in the eurozone and Japan.

 Read more: Grim global growth outlook says World Bank | euronews, economy