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Master_Income_8991 t1_jedhdvf wrote

Reply to comment by neverbeenwrongb4 in China calls US debt trap accusation 'irresponsible' by BubsyFanboy

I doubt the IMF requires collateral upfront in cash as a condition for a majority of their loans, that defeats the purpose of a loan. Although if you had a source, ideally an example of a contract that would help convince me. At least this was nowhere near the case with IMF operations in Greece, right?

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neverbeenwrongb4 t1_jedoq9s wrote

The asset sell-offs aren't collateral for the loan. They're part of the IMF's "good government" requirements. Some of those requirements are perfectly reasonable, reining in corruption and state embezzlement and such. But they make very politically controversial demands to cut subsidies, lay off government workers, and privatize state-owned industries like railroads, airlines, telecoms, power plants, even minerals and oil. And privatizing those industries means selling them off to the highest bidder: typically Western foreign capital.

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