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That's incorrect. The IMF had been active for decades as a creditor to various Warsaw Pact countries.

When energy prices crashed in the 1980s, as a consequence of the development of the North Sea oil and gas deposits, they became unable to finance the imports of higher quality Western consumer goods to which the population had become accustomed during the period of high energy prices in the '70s. It went predictably downhill from there.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon May 13th, 2013 at 02:28:22 PM EST
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'The IMF had been active for decades' on account of western banks lending into the Warsaw Pact countries, a substantial part of which was vendor finance. But it was not until October 5, 1991, when President Mikhail Gorbachev and Managing Director Michel Camdessus entered into an agreement: Special Association Between the U.S.S.R. and the Fund - Terms and Conditions. But this agreement became null and void upon Gorbachev's resignation and the dissolution of the USSR. Seeing his plans for a federation of socialist states fail Gorbachev resigned on December 25, 1991. Yeltsin had already announced in October that Russia would proceed along the lines recommended by the IMF.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon May 13th, 2013 at 04:56:38 PM EST
[ Parent ]


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