IMF, World Bank call for suspending debt payments by poorest nations

Yahoo – AFP, March 25, 2020

The World Bank's International Development Association fights poverty in some
of the world's poorest countries, including Central African Republic (AFP Photo/
CAMILLE LAFFONT)

The International Monetary Fund and World Bank on Wednesday called for governments to put a hold on debt payments from the world's poorest nations so they can battle the coronavirus pandemic.

"The World Bank Group and the IMF believe it is imperative at this moment to provide a global sense of relief for developing countries as well as a strong signal to financial markets," the Washington-based development lenders said in a joint statement.

The move aims to help countries that are home to two-thirds of the world's population living in extreme poverty -- largely in sub-Saharan Africa -- and qualify for the most generous, low-cost loans from the International Development Association (IDA) financed by wealthier nations.

"The coronavirus outbreak is likely to have severe economic and social consequences for IDA countries" which will face "immediate liquidity needs to tackle challenges posed by the coronavirus outbreak," the organization said.

The IMF and World Bank called on the Group of 20 nations to support the initiative for "all official bilateral creditors to suspend debt payments from IDA countries that request forbearance."

In addition, the institutions called for an analysis of the financing needs these countries will face, and whether their total debt load is sustainable.

Part of the World Bank, the IDA is one of the largest sources of assistance for the world's 76 poorest countries, providing zero or low interest loans spread over 30 years or more, and grants to some distressed nations.

In the fiscal year ending June 30, 2019, IDA commitments totaled $22 billion, of which 36 percent was provided on grant terms, according to the World Bank.

G7 pledge to 'do whatever it takes' to safeguard economy

Yahoo – AFP, March 16, 2020

G7 leaders, pictured in 2017, say their finance ministers will talk to each other weekly
as the coronavirus ravages the global economy (AFP Photo/STEPHANE DE SAKUTIN)

Washington (AFP) - Leaders of the G7 industrial powerhouses pledged Monday to join forces to halt economic freefall in the wake of the coronavirus pandemic, which they called "a human tragedy."

As the outbreak caused more countries to shut down and brought the global economy to a screeching halt, the leaders stressed the need to join forces and move quickly to address the damage.

"The COVID-19 pandemic is a human tragedy and a global health crisis, which also poses major risks for the world economy," a joint statement from Britain, Canada, France, Germany, Italy, Japan and the United States said.

"We resolve to coordinate measures and do whatever it takes, using all policy tools, to achieve strong growth in the G7 economies and to safeguard against downside risks," the leaders said in a statement following an emergency videoconference.

The measures aim to "support immediately and as much as necessary the workers, companies and sectors most affected," the statement said.

The G7 likewise said it would work together on "border management" following the drastic curtailment of movement across borders in an effort to slow the spread of the illness.

With market selloffs triggered by mass quarantines and travel restrictions, governments in the world's wealthiest countries are under pressure to show they can control the situation.

The G7 leaders instructed their finance ministers to consult weekly to implement policy measures and "develop further timely and effective actions."

Health ministers will likewise talk weekly to try to coordinate information to the public and medical know-how and equipment.

The G7 leaders noted the disruption to supply chains due to transportation shutdowns, as well as the harm to families.

They called on global institutions like the IMF to "swiftly" deploy financial assistance to countries that need it.

"We are committed to working together with resolve to implement these measures to respond to this global emergency," they said.

And they said they are "determined not only to restore the level of growth anticipated before the COVID-19 pandemic but also to build the foundation for stronger future growth."

In Washington, the White House called the videoconference "historic" and said the G7 leaders worked to "accelerate the national health and economic responses to the coronavirus pandemic in order to save lives and restore economic growth."

Lagarde urges policymakers to resolve manmade economic threats

MSN – AFP, 20 September 2019

Eric BARADAT Outgoing IMF Managing Director Christine Lagarde gives an
exclusive interview to AFP journalists at the IMF headquarters in Washington
on September 19, 2019

Accustomed to being the first woman in influential leadership positions and speaking frankly to men in power, Christine Lagarde says manmade threfinats to the global economy can be "man-fixed."

Lagarde only last week left her post as head of the International Monetary Fund after eight years, the first woman to serve in that role, and she is expected to put another "first" on her resume by the end of the year: first woman to serve as president of the European Central Bank.

Eric BARADAT Christine Lagarde is expected to take over
leadership of the European Central bank and calls for
 policymakers to address manmade threats to global growth

She sees a world economy where growth is "fragile" and "under threat" from trade frictions and Brexit, and perhaps an over-reliance on the efforts of central banks like the ECB.

But while she tried to urge action during her time at the IMF -- she took over in 2011 in the aftermath of the global financial crisis -- she said a central bank should "stick to its mandate," which perhaps is a clue to how she will run the ECB.

Or perhaps not.

She carefully avoided a commitment about how she would use her influence in the new post.

Manmade problems can be 'man-fixed'

In perfect English and always engaging and crisply professional, Lagarde sat down with AFP on Thursday to review her legacy at the Washington-based crisis lender, where she arrived after being the first woman finance minister of France.

In bare numbers, her record is impressive: the IMF helped to avoid a global depression, 90 countries -- nearly half of its members -- benefitted from some form of lending or credit line during the crisis, and the lending capacity was doubled to $1 trillion.

One of her main regrets is that she ran out of time to convince the member governments to increase those resources further, since the IMF, which sits "right at the core, at the center of the global financial safety net," may not have enough cash to address the next inevitable crisis.

Still, the IMF remains influential over economic and financial policy matters.

"I think we have spoken truth to power, not always to the power's pleasure," Lagarde said.

But as she leaves Britain is poised to crash out of the European Union, with no deal to cushion the blow in place as yet, while "America First" President Donald Trump has waged a multi-front trade war primarily targeted at China.

Those threats have undercut confidences and business investment as well as exports, and global growth could by some estimates fall to the slowest pace since 2008 at the start of the financial crisis.

But Brexit and trade frictions "are manmade and can be man-fixed," and Lagarde quipped, "A bit of woman wouldn't hurt."

Where are the roof fixers?

She has often urged governments to "fix the roof while the sun is shining," borrowing from former US President John F Kennedy, pushing for spending while times are good to fix long-term problems and help people left behind by globalization and technological change.

Yet even amid a worldwide wave of anger against trade and globalization, officials who control the purse strings of governments have not done enough, Lagarde said.

Instead central banks have done much of the heavy lifting in preventing the financial crisis from becoming a depression.

"I think central bankers have done an awful lot and were for many years regarded as the only game in town," she said.

If confirmed, Lagarde will step into her new post as one of those central bankers in an environment where Trump has maintained a relentless campaign against the US Federal Reserve for not cutting interest rates aggressively to stimulate growth, while others in Europe have criticized outgoing ECB President Mario Draghi for cutting rates further into negative territory to juice a sluggish EU economy.

Experience shows that when politicians meddle with central bank independence it "doesn't pan out very well," she cautioned, but at the same time "a central bank has to do the job that it is assigned to do... they should stick to facts and data so that they could be predictable."

In her new post leading the ECB, she pledged to focus on job creation and stability, but stability alone may not be enough in the lives of real people.

World Bank's Georgieva poised to become 2nd female IMF chief

France24 – AFP, 9 September 2019

Washington (AFP) - A top executive at the World Bank, Kristalina Georgieva of Bulgaria, now faces no opposition in her candidacy to lead the International Monetary Fund, the fund announced Monday.

Georgieva, currently the bank's chief executive officer, is all but guaranteed to become the second woman ever to lead the fund.

Georgieva will replace former IMF chief Christine Lagarde, who has been named to lead the European Central Bank.

"The board's goal is to complete the selection process as soon as possible and at the latest by October 4, 2019," the IMF board said in a statement.

Under an unwritten rule, a European has always led the IMF since its creation in the aftermath of World War II while Washington has designated the leadership of the fund's sister organization, the World Bank.

The nominating period closed on Friday, a day after the fund formally lifted the age limit of 65 years for its leadership, clearing the way for the 66-year-old to take up the position.

No other candidates came forward.

The IMF executive board will now hold meetings with Georgieva, the statement said.

She said last month she was "honored" to be nominated to lead the IMF and was taking leave from her work at the World Bank.

The IMF, a global crisis lender, has been buffeted over the last year by the rise of populism in advanced economies and escalating trade conflicts running counter to the fund's mission of promoting international commerce.

Davos elites warned on populist rage, economic uncertainty

Yahoo – AFP, Nina Larson with Heather Scott in Washington, January 21, 2019

Global elites arriving in Davos for the World Economic Forum were met with
 urgent warnings about popular anger and economic uncertainty (AFP Photo/
Fabrice COFFRINI)

Davos (Switzerland) (AFP) - Global elites descending on Davos for the World Economic Forum faced urgent warnings from Oxfam and the IMF on Monday that the international economy is at risk, as swelling inequality stokes public anger.

Even before the official kick-off of the annual week of networking and socialising by the world's rich and influential, it was clear that this year's event would be shadowed by increasing instability and an upsurge in populism.

Leaders from the United States, France, Britain and Zimbabwe have stayed away from the Swiss ski resort in order to put out political fires back home, largely stoked by popular anger against the elite.

The International Monetary Fund warned in an update to its global economic forecasts that US-China trade confrontations, Brexit and other sources of uncertainty were threatening to drag down global growth even further than its already pessimistic outlook published three months ago.

International Monetary Fund Managing Director Christine Lagarde warned

 that the world economy is growing more slowly than expected (AFP Photo/

Fabrice COFFRINI)

The IMF cut the global GDP forecast for this year to 3.5 percent from the 3.7 percent projected in October. For 2020, the estimate was trimmed to 3.6 percent.

"The bottom line is that after two years of solid expansion, the world economy is growing more slowly than expected, and risks are rising," IMF chief Christine Lagarde told reporters in Davos.

"Does that mean that a global recession is around the corner?" she asked. "No. But the risk of a sharper decline in global growth has certainly increased."

Brexit worries

IMF chief economist Gita Gopinath pointed to the uncertainty surrounding Britain's divorce from the European Union, with no deal in sight just weeks before Brexit is meant to take effect on March 29.

"It is imperative for leaders to resolve this uncertainty immediately," Gopinath said.

Oxfam executive director Winnie Byanyima says that "extreme inequality is 

out of control" (AFP Photo/Fabrice COFFRINI)

And while growth is slowing, Oxfam warned in a report timed for the start of the Davos forum that inequality is not.

The UK charity found that the world's 26 richest people -- three of them set to come t to Davos this week -- now own the same wealth as the poorest half of humanity.

"Extreme inequality is out of control," Oxfam executive director Winnie Byanyima told AFP in an interview.

While billionaires saw their combined fortunes grow by $2.5 billion each day last year, the world's 3.8 billion poorest saw their relative wealth decline by 11 percent.

Oxfam warned that the growing gap between rich and poor was undermining the fight against poverty, damaging economies and fuelling public anger.

It also urged countries to slap more taxes on the wealthy.

Findings of Oxfam report on inequality (AFP Photo/Kun TIAN)

The IMF released its report at the annual gathering of economic and financial leaders and once again urged action to defuse the risks.

Several major economies saw sharp downgrades to the GDP estimates, including Germany, Italy and Mexico, along with a smaller cut for France amid the "yellow vest" demonstrations that have riven the country.

However, the US and China, the world's two largest economies and the source of much of the global risk because of a trade war, did not see revisions.

The US is expected to grow by 2.5 percent this year and by 1.5 percent in 2020. China's GDP is forecast to expand by 6.2 percent in both years, as the Asian giant endures an unaccustomed slowdown.

Weakened global economy

An "escalation of trade tensions ... remains a key source of risk to the outlook," the IMF warned, pointing to the sharp decline in stock markets in the final weeks of 2018.

Business delagates and officials flocked to Davos for the economic forum, but

 leaders from the US, France, Britain and Zimbabawe stayed away to tackle

problems back home (AFP Photo/Fabrice COFFRINI)

Washington and Beijing declared a 90-day truce on December 1, but the risk remains that tensions will flare up again in the spring and "casts a shadow over global economic prospects."

Another major concern is the potential for a more severe slowdown in China, which would have repercussions throughout Asia.

So far, a fiscal stimulus in China has cushioned the impact of the trade disputes, but the IMF insisted the two sides "resolve cooperatively and quickly" their trade disagreement.

Beyond the trade risks, the month-long US government shutdown and the possibility of a no-deal Brexit alarmed the IMF.

It forecast 1.5 percent growth for Britain in 2019, the same as in October, but warned the estimate is fraught given the unknowns of Brexit.

Emerging powers rise in IMF as US unblocks reforms

Yahoo – AFP, Jeremy Tordjman, December 19, 2015

The US Congress approved long-stalled reforms of the International Monetary Fund
that will give greater voice to emerging-market powers (AFP Photo/Mandel Ngan)

China, India and Russia will soon speak with a louder voice at the International Monetary Fund.

After years of opposition, the US Congress has dismantled the final barrier to reforms that will give the emerging-market powers more say in the affairs of the 188-nation global crisis lender.

The IMF reforms are part of a $1.1 trillion spending package approved by Congress on Friday, and signed into law by President Barack Obama.

Adopted in 2010 by the international community, the reforms were expected to take effect in 2012.

MF Managing Director Christine Lagarde 

has been pushing hard for changes in the

 voting rights of members to preserve the

 credibility of the Fund (AFP Photo/Mandel 

Ngan)

But with the United States holding by far the largest share of voting rights at the IMF, Congress's refusal to approve the reforms had held up their implementation, to the consternation of IMF management and members.

The blockage has been a sore point between President Barack Obama's Democratic administration and the opposition Republicans who control Congress.

Republicans had rejected the slightest favorable gesture toward the multinational organization, the object of some criticism in Washington for its largesse toward Greece.

In recent years, international summits have unfailingly included a pointed reminder about the stalled reform process -- seen as all the more frustrating since the United States was among the first countries to call for an IMF overhaul in 2010 amid the global financial crisis.

At the end of their last summit in mid-November in Turkey, the Group of 20 economic powers said in a statement that they "remain deeply disappointed" with the delay in reforms and "we urge the United States to ratify these reforms as soon as possible."

The long stall also led the so-called BRICS -- Brazil, Russia, India, China and South Africa -- to set up an economic alternative, launching in July 2014 their own monetary fund and development bank.

The US approval will likely ease their frustrations with the 70-year-old IMF, dominated by the US, Europe and Japan, as well as remove a major headache for the Obama administration.

"The IMF reforms reinforce the central leadership role of the United States in the global economic system and demonstrate our commitment to maintaining that position," US Treasury Secretary Jacob Lew said in a statement.

IMF credibility on line

The reforms, however, are crucial for the IMF itself. They double the crisis lender's permanent financial resources, known as quotas, to some $660 billion.

The green light by Congress thus paves the way for the IMF to abandon some makeshift mechanisms it had adopted to keep its finances afloat and finance rescues of members in crisis.

But above all it allows the Washington-based institution, founded in 1945, to better reflect the current interconnectedness of the world economy, exposed in stark relief during the 2008-2009 global crisis.

The measures slightly reshuffle the IMF executive board by reducing the representation of advanced economies, particularly in Europe, to give a greater voice to dynamic emerging powers.

Currently China, the world's second-largest economy, has less than 4.0 percent of voting rights at the IMF, only slightly less than Italy whose economy is five times smaller.

After the reforms are implemented, China will see its voting rights nearly double to over 6.0 percent, the largest gain. For example, India's weight will rise from 2.3 percent to 2.6 percent.

The US action also hands a personal victory to the managing director of the IMF, Christine Lagarde, who has been pushing hard for the changes to preserve the credibility of the Fund.

Lagarde once joked she would "do belly-dancing" if needed to get US ratification.

"The United States Congress approval of these reforms is a welcome and crucial step forward that will strengthen the IMF in its role of supporting global financial stability," Lagarde said.

Still, the reforms will not resolve all the representation problems at the IMF. With 16.5 percent of voting rights, the United States remains the largest stakeholder and continues to hold veto power.

"The IMF reforms remove a stain on the institution's legitimacy," Eswar Prasad, a former IMF official, told AFP.

"However, the scars caused by the protracted delay in having these reforms ratified and put into operation will not be easily erased."

IMF approves China's yuan as elite reserve currency

Yahoo – AFP, Veronica Smith, 30 Nov 2015

The yuan, also known as the renminbi, will join the US dollar, euro, Japanese yen 

and British pound in the basket of currencies the IMF uses as an international

reserve asset (AFP Photo/Philippe Lopez)

Washington (AFP) - The International Monetary Fund welcomed China's yuan into its elite reserve currency basket on Monday, recognizing the ascendance of the Asian power in the global economy.

The yuan, also known as the renminbi, will join the US dollar, euro, Japanese yen and British pound next year in the basket of currencies the IMF uses as an international reserve asset.

IMF Managing Director Christine Lagarde called the decision "an important milestone in the integration of the Chinese economy into the global financial system."

"It is also a recognition of the progress that the Chinese authorities have made in the past years in reforming China's monetary and financial systems."

The move by the IMF executive board, representing the institution's 188 member nations, solidifies China's ambition to see the government-controlled yuan achieve global status as one of the world's top currencies alongside the United States, Europe and Japan.

China, the world's second-largest economy, asked last year for the yuan to be added to the Fund's Special Drawing Rights basket.

But until recently the currency was considered too tightly controlled to qualify. The yuan already had met the IMF criteria for being widely used.

The board approval had been widely expected after IMF staff experts earlier in November said that Chinese authorities had taken the steps necessary for the yuan to be called "freely usable", and Lagarde endorsed their recommendation.

International Monetary Fund Managing Director Christine Lagarde, said on 

November 30, 2015 the yuan's inclusion in the elite reserve currency basket was

expected to help China open up further to the world economy (AFP Photo/
Mandel Ngan)

Lagarde said the yuan's inclusion in the basket was expected to help China open up further to the world economy.

"The continuation and deepening of these efforts will bring about a more robust international monetary and financial system, which in turn will support the growth and stability of China and the global economy," she said.

IMF members can use the Special Drawing Rights basket to obtain currencies to meet balance-of-payments needs. The Fund also issues its crisis loans -- crucial to struggling economies like Greece -- valued in SDRs.

The yuan's entry into the basket takes effect on October 1, 2016.

China's central bank has taken steps to free up the movement of the yuan. The unexpected devaluation of the yuan last August received good marks from the IMF as it expanded the currency's movements based on market forces.

In addition, Beijing last Wednesday announced that an initial group of foreign central banks has been allowed to enter the Chinese currency market, which likely will promote further internationalization of the yuan in global trading.

Chinese challenges

But China is expected to face challenges with the yuan included as an IMF reserve currency.

It puts the Bank of China under pressure to provide more transparency in line with its peers, such as the Federal Reserve and the European Central Bank.

Lagarde, speaking at a news conference, said the IMF had worked "very hard" in the last few months in the process of making the decision.

She emphasized that it is a work in progress, and that the IMF will continue to monitor all criteria and compliance from all five authorities whose currencies are represented in the basket.

The composition and weightings of the SDRs basket are reviewed every five years. The last time the currencies in the basket were changed was in 2000, when the euro replaced the German deutschemark and the French franc.

The inclusion of the yuan in the IMF basket came with the support of the United States, the IMF's largest shareholder.

Until recently Washington accused China of keeping the yuan artificially low to gain a trade advantage. But in October the US Treasury Department softened its tone, saying that after Beijing's moves to loosen controls, the yuan "remains below its appropriate medium-term valuation."

Still, the IMF decision risks angering some lawmakers in the US Congress amid fierce maneuvering for the 2016 presidential election.

Congress, for example, has repeatedly refused to ratify a 2010 IMF reform that would give greater weight to China and the four other emerging-market powers in the so-called BRICS: Brazil, Russia, India and South Africa.

New $100 bn BRICS bank opens in China to challenge US-led lenders

Yahoo – AFP, 21 July 2015

The bank's opening comes two weeks after a BRICS summit hosted by

Russian President Vladimir Putin (AFP Photo/Alexander Nemenov)

A new $100 billion international bank dedicated to the emerging BRICS countries opened in China's commercial hub Shanghai on Tuesday, officials said, as an alternative to other multilateral lenders.

The "New Development Bank", backed by the so-called emerging BRICS nations Brazil, Russia, India, China and South Africa, has been viewed as a challenge to Washington-based institutions.

The NDB's website explicitly describes it as an "alternative to the existing US-dominated World Bank and International Monetary Fund" which will address needs for infrastructure and sustainable development.

It comes as Beijing -- which is seeking a greater role on the global political stage to mirror its rise to become the world's second-largest economy -- is also setting up a separate Asian Infrastructure Investment Bank (AIIB).

Chinese Finance Minister Lou Jiwei played down the competitive aspect.

"The NDB will supplement the existing international financial system in a healthy way and explore innovations in governance models," he told the NDB's opening ceremony in Shanghai, as quoted by the official Xinhua news agency.

The bank says on its website that it will have authorised capital of $100 billion, with $50 billion paid in initially.

From L: Brazil's President Dilma Rousseff, Indian Prime Minister Narendra Modi, 

Russia's President Vladimir Putin, China's President Xi Jinping and South Africa's

 President Jacob Zuma at the 7th BRICS summit in Ufa on July 9, 2015 (AFP

Photo/Alexander Nemenov)

Xinhua quoted bank president K. V. Kamath, formerly a private banker in India, as saying the institution's management was "working on initiation of operations", including "making business policy" and "developing project preparations".

Operations would begin late this year or early in 2016, he added.

The opening comes two weeks after a BRICS summit hosted by Russian President Vladimir Putin.

Moscow -- which has suffered huge currency fluctuations and struggled to attract investors since the outbreak of the crisis in Ukraine -- sees the bank and a BRICS currency reserve pool as alternative global financial institutions.

At the time of the summit, Russian Foreign Minister Sergei Lavrov said in a statement that BRICS "illustrates a new polycentric system of international relations" demonstrating the increasing influence of "new centres of power".

'Financial order'

The BRICS nations, which represent 40 percent of the world's population, formally agreed to establish the bank at a meeting in Brazil in July last year.

The World Bank said it hopes to work with the newcomer.

"We are committed to working closely with the New Development Bank and other multilateral institutions, offering to share our knowledge and to co-finance infrastructure projects," World Bank president Jim Yong Kim said in a statement.

China, the world's second-largest economy, is also leading the setting up of 

another new multilateral lender, the Asian Infrastructure Infrastructure Bank (AIIB)

(AFP Photo/Johannes Eisele)

The regionally-focused Asian Development Bank also said it would "look forward" to working with the NDB.

Chinese analysts denied the BRICS bank was aimed at challenging other multilateral agencies.

"It's a complement, instead of a challenge, to existing international institutions," Li Daxiao, chief economist of Yingda Securities, told AFP.

"It can help strengthen the currency markets and maintain a stable financial order through the internal stabilisation of the BRICS countries," he said.

The other new Chinese-based multilateral lender, the AIIB, will be headquartered in Beijing and China will be its biggest shareholder with about 30 percent, according to the legal framework signed late last month by 50 founding member countries.

Major European and Asian economies including Germany, Britain, France and Australia have joined the AIIB, but the United States and Japan -- the world's largest and third-largest economies, respectively -- have declined to do so.

IMF's Lagarde urges debt restructuring for Greece

Yahoo – AFP, 17 July 2015

An EU flag waves above the Parthenon in Athens as Eurozone countries

 finalise an 86 billion euro bailout for Greece (AFP Photo/Aris Messinis)

Paris (AFP) - IMF chief Christine Lagarde on Friday stressed the importance of easing Greece's debt burden for her institution to participate in the European rescue package for Athens.

Speaking on French radio, Lagarde was asked whether the rescue plan for Greece clinched in Brussels on Monday was viable without restructuring Athens's enormous debt load.

"The answer is fairly categoric: 'no'," she insisted.

She said Greece's European partners had accepted the "principle" of easing the debt burden, but "neither the amount nor the method."

"For us to participate, we need a complete programme and from our point of view, this programme has two parts," she told Europe 1.

The first part is that the Greeks must enact fundamental reforms to free up the economy and allow it the possibility to grow.

International Monetary Fund (IMF) chief Christine Lagarde talks to reporters after

 Eurozone leaders agreed a Greek bailout plan after a crisis meeting in Brussels, 

on July 13, 2015 (AFP Photo/Thierry Charlier)

"The second part comes from the lenders, and that consists on one hand of providing finance and on the other hand of restructuring the debt to ease the burden," she said.

She said she preferred to extend the maturity of the debt and also stretch out a grace period during which Athens is not obliged to make payments.

Lagarde also said the interest payments should be reduced to the minimum amount "to make the debt sustainable."

On Wednesday, the Greek parliament passed a sweeping and unpopular set of reforms demanded by creditors in return for an 86 billion euro ($94 billion) rescue package.

Chancellor Angela Merkel on Friday acknowledged that the contentious deal was "hard" for all sides, as she urged the German parliament to vote in favour of the agreement.

G20 Finance Ministers and Central Bank Governors pose for the G20 family photograph

during the World Bank/IMF Annual Meetings in Washington on October 11, 2013 (AFP, Mandel Ngan)

Related Articles:

Tax the rich? IMF sparks a mini revolution

Archangel Michael on the World’s Movement into the Golden Age, March 24, 2013 – Part 2/2

“… GW: Shifting to events that are taking place in Europe at this point in time, it seems that the events in Europe are reaching or about to hit a breaking point of some kind. Several leaders, including Nigel Farage and allegedly Russian Prime Minister Medvedev have suggested that people should be removing their money from their accounts as the cabal may attempt a last ditch grab for money.

Now, I know, and perhaps many know, that the current system is corrupt and that there will have to be a degree of change in the current system before people will be willing to embrace the new system.

I don’t wish this question to sound alarmist to people, but is what is happening now one of the final, if not the final, straw that will help expose the banking cabal and allow the new system to be implemented? Is this new system ready? Or is it already being implemented? Or is it still only limited to preparatory work?

AAM: No, it is already underway. It is already being implemented. And yes, we do not wish to sound alarmist either, and so we also wish people to know that their resources, what they think of as their money, for those who have saved and put their faith in banking systems, they will be protected to a certain extent. So do not think that you have need to run out and remove all your monies, or that it will be completely gone. But yes, this is the beginning of a transition.

The expression of the lack of faith in particularly the European banking system causes enormous disruption, more significant perhaps than anywhere else. And so yes, it does have a domino effect, but it is not one simply shutting down [the old system] and a new system emerging. It is coming into balance with the new emerging as the old simply fades away.

Is it a last ditch effort on the part of those who have clung to the old paradigm of the 3rd, what you call the cabal? Yes, it is. But it matters not, because it is not going to work for them. Seldom are things such as this situation so black and white. There is always room for free choice and free movement and adjustment.

But in this situation it is simply evolution and expansion. And the expansion of the new, of the new paradigm, of what you think of as Fifth-Dimensional financial systems does not allow for systems that are based on greed and theft and control — and unfairness, basic unfairness, usury.

So, it is rather clearly defined. You have an expression that you use on Earth, “Out with the old.” And this is one of those situations where it is, in fact, the truth.

GW: Okay. So, along the lines of the leadership, or at least some of the leadership of what’s taking place in the financial sector globally, it has been reported that the apartment of the IMF managing director Christine Lagarde was raided last week.

Was this an attempt to expose her as part of the banking cabal, or was it an attempt to stop her from fulfilling the reforms that she is allegedly trying to bring to the international banking system?

AAM: It was an attempt to gather information and perhaps even destroy documentation that she is trying to bring forth for the reform of the financial situation. It was an unsuccessful raid.

GW: Okay. So what I’m hearing in your answer, then, is that Christine Lagarde is working for, I guess, the forces of light to bring the greater change to the IMF. Am I correct?

AAM: Yes. This one has had a real turn-around. No, we do not ever categorize individuals or groups or people as light or dark. But this one has truly committed herself to reformation.

She sees and she has the experience very clearly of knowing what does not work. And therefore she has committed her mission, her purpose to this reformation.

GW: Okay. And could the same be said about the new US Secretary of the Treasury Jack Lew? Is he on board with all the changes and working for the reformation as well with Lagarde?

AAM: He is an agent and an angel of change. He could not be simply on board. He is a moving force. ‘…‘’

Offshore Secrets

Nina Ricci heir convicted of tax evasion in France with help of HSBC

Tax office amnesty generates €1.6bn for the treasury

Gary Barlow apologises over tax affairs

Swiss complete tax-dodge payments to Britain, Austria

UK tax inspectors collect record £23.9bn

France nets 1.8 billion euros in anti-tax-fraud drive

Amnesty for foreign bank accounts nets €450m for the treasury

Hoeness alleged tax liability soars to 23.7 million euros

German feminist Alice Schwarzer admits to Swiss account, then goes on offensive

Illicit savers admit to stashing away €552m, minister says

Hundreds confess to tax office about secret foreign savings accounts

US slaps Credit Suisse with $2.6 billion fine for aiding tax evaders

Swiss company agrees to pay $4.4m fine for helping US tax dodgers

EU, Switzerland sign tax info exchange deal - New

Indonesia, Singapore Agree to Step Up Sharing of Tax Information

Commentary: OECD tax agreement - a little more justice

Ireland to close ‘double Irish’ tax loophole

G20 countries agree to exchange tax information to stamp out evasion

OECD proposes curbs to corporate tax avoidance

US to add Taiwan to list of states complying with new tax evasion act June

Singapore and US reach tax evasion deal

Switzerland, Singapore join clampdown on bank secrecy

Offshore tax evaders targeted with new ad campaign of warnings

New asset declaration rules linked to China's anti-graft efforts

The Netherlands and US agree tax information exchange

Cayman Islands and Costa Rica agree to share bank account details with US Liechtenstein ends banking secrecy, accepts OECD tax rules

G20 to share tax information by 2015

China joins anti-tax evasion convention

Dutch polish tax image, to 'update' treaties with 23 poor countries

G20 backs plan to stop global tax avoidance and evasion

G8 leaders agree tax evasion measures

Indonesia Welcomes Tax Haven Transparency

British PM strikes 'tax havens' deal ahead of G8

Andorra to introduce income tax for first time

Swiss strike bank deal with US over tax evasion

Singapore Boosts Measures Against Global Tax Cheats

Bermuda and UK territories sign anti-tax evasion deal

Austria to loosen bank secrecy laws within weeks

Luxembourg to ease the secrecy surrounding its banks

Australia to force multinationals to disclose tax arrangements

HMRC in offshore tax evasion crackdown after receiving fresh data

G20 urges global community to end banking secrecy

Major EU countries to tackle tax havens

France's President Hollande: Eradicate tax havens

Dutch MPs call for action on tax havens, plan should be ready by summer

EU deal to tackle mining corruption

French ministers to declare assets publicly

------------------------------------------   Africa  --------------------------------------------

The Netherlands to pay tax on development aid - New

Dutch polish tax image, to 'update' treaties with 23 poor countries

Dutch agree new tax deal with Malawi, aim to stop tax avoidance

Africa losing billions from fraud and tax avoidance

--------------------------------------------- Asia -----------------------------------------------

China Offshore Secrets

Modi Gives Last Chance for India Tax Evaders in $2 Trillion Hunt

New US taxact will help China anti-graft campaign

Asian logging companies 'use British islands for tax dodging'

Wealthy in China need new tax haven as Switzerland U-turns on banking privacy

Offshore tax-dodging piece shows anti-Chinese bias: report

Chinese oil giants make use of offshore shell companies in Caribbean

China's cash haven in the British Virgin islands – the key points

China's princelings storing riches in Caribbean offshore haven

-----------------------------------   South America  --------------------------------------

Coveted and criticized, Latin America's rich multiply

------------------------------------------   Europe  --------------------------------------------

EU Offshore Secrets

Dutch tax office tracks foreign bank card payments in hunt for illicit savings - New

UK companies aiding tax evaders will be criminally liable

HSBC may shut Jersey accounts of UK residents

Greece seeks to plug its 'Bermuda Triangle' of lost taxes

British property 'safe haven' for corrupt cash: campaigners

UBS Whistle-Blower Says Bank Has ‘Global’ Issue With Tax Evaders

HSBC bank 'helped clients dodge millions in tax'

Belgium’s big business tax breaks drawn into EU tax avoidance probe

World unites to decry prosecution of source behind LuxLeaks tax scandal

Luxembourg tax files: how tiny state rubber-stamped tax avoidance on an industrial scale

Offshore tax dealings: celebrities and sportsmen in leaked Jersey files

EU launches investigation into Apple, Starbucks and Fiat tax deals

Swiss bank accused of helping clients evade US taxes

Gibraltar tries to lure London hedge fund bosses with promise of low taxes

Dutch savers have €1.1bn in Luxemburg and Austria: tax office

Dutch finance ministry denies Starbucks tax secrecy claims

100 of UK's richest people concealing billions in offshore tax havens

The 'who's who' of European tax havens

Accountancy firms 'use knowledge of Treasury to help rich avoid tax' – MPs

The nation at the heart of the offshore scandal: Britain

Leaks reveal secrets of the rich who hide cash offshore