According to the IMF

According to the IMF, Ukraine's war-ravaged economy could shrink by up to 35% this year if Russia's invasion becomes a protracted conflict. This will have serious consequences on the Ukrainian popular classes who are reeling under serious difficulties. At the end of 2021, Ukraine was already burdened with $94 billion in public debt on its shoulders, 61.7 per cent of its GDP. The war is going to seriously aggravate the situation. Of course, the most tragic is the terrible loss of life and human suffering, but the material destruction too is enormous. The Ukrainian working people are left to bear the brunt as they are attacked from all directions - socially, politically and economically. We present a 2018 article dealing with the Ukrainian debt to Russia. The issue is more relevant than ever as the London court case on the matter, is still on. A month back, the Argentine Senate approved an IMF deal in a bid to avoid a debt default. The controversial agreement restructures $45 billion of debt, postponing the repayment until 2026. According to the late President of the country, Nestor Kirchner, “the IMF has always acted as a promoter and vehicle of policies that provoked poverty and pain in Argentine society.” The situation is dire in the country with two out of five Argentinians living below the poverty line and with terrible inflation these ranks will swell abnormally. The national institute of statistics, INDEC, recently revealed that inflation had risen 4.7 per cent in February alone – 7.5 per cent for food. Inflation in the previous 12 months is running at 52.3 per cent. According to IMF conditionalities, Argentina will have to tighten the noose around social spending which implies that poorer sections of the society will see their already meager earnings, further depleted. CADTM joins millions of Argentinians who demand the suspension of debt payments and citizen’s audit of the illegitimate, odious and illegal debt. Meanwhile, the Indian ocean island Sri Lanka is in a severe debt crisis that has crippled the nation’s economy. With its foreign exchange reserves shrinking quickly, massive debt payments due and the rupee currency slumping, the country has no means or wherewithal to pay debts. The popular classes are out in the streets demanding an end to government policies that have seen their living standards dramatically deteriorate. A humanitarian crisis including shortages of fuel, power, food and medicines is unfolding. Instead of introspection about their faulty policies, the government is looking to restructure a $1 billion sovereign debt due for payment in July. Sri Lankans have the right to suspend the payment of the debt and organise debt audits. We also present readers with articles by Michael Roberts on the submerging market debt crisis, long depressions and the fallout of Ukraine - Russia conflict.

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