Joseph Cotterill @jsphctrl.ft.com · Apr 27 The UAE recall of its deposit from Pakistan also shows a weakness in IMF bailouts. The fund gets ‘financing assurances’ from big creditors (the ‘promise’ in the second paragraph). But, like the UAE, creditors can backtrack and no one can do much about it. www.ft.com/content/9907...
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The Fund and other creditors could say they'll support a debtor to default on any creditor who withdraws financing assurances, using their Lending into Arrears policy.