Saturday, November 15, 2008

IMF Bails Out Pakistan, Iceland Still Waits

by Bill McBride on 11/15/2008 09:59:00 PM

From CNN: Pakistan borrows $7.6B from IMF

Pakistan's government has agreed to a $7.6 billion aid deal with the International Monetary Fund (IMF), Pakistan's top finance official said.
...
Pakistan expects to receive the first installment before the end of the month with further payments spread over a two-year period, according to The Associated Press.

The loan will be used to bolster Pakistan's dwindling foreign currency reserves amid concern that a run on the Pakistani rupee could force the country to default on its international debt, AP said.
Meanwhile Iceland still waits. From Bloomberg: Icelanders Protest Government Failure to Clinch Loan
Icelanders will take to the streets in their thousands tomorrow to protest the government's failure to clinch a $6 billion International Monetary Fund-led loan while countries in less dire economic straits jump the IMF queue.

Weekly protests in downtown Reykjavik may swell to 20,000 soon, or 6 percent of the population, said Andres Magnusson, chief executive of the Icelandic Federation of Trade and Services. The islanders are venting their anger on politicians as prices soar, the krona collapses and the economy goes into reverse.
Here is a video of the protests in Iceland:



In Pakistan they protest receiving aid. In Iceland they protest not receiving aid. In the U.S. everyone just becomes a bank ...