The FBI and US Congress are investigating allegations that the Bank of New York, the Republic National Bank and other Western financial institutions were involved in laundering IMF loans siphoned out of Russia by the mafia helped by top Kremlin officials. Amongst those being investigated is the former Russian Executive Director to the IMF, Konstantin Kagalovsky. It is believed that US$10bn, nearly half the IMF‘s loans to Russia since 1992, were siphoned out of the country. The US government has stated that it will not support release of the next US$640m slice of the $4.5 billion promised by the IMF in July until the laundering case is fully investigated. IMF officials are unhappy with the slow progress of the Russian authorities’ investigation into the case.
It is time for the IMF and World Bank to understand their own responsibility and decolonise their approach.
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The Bretton Woods Project is a UK-based NGO that challenges the World Bank and IMF and promotes alternative approaches. We serve as an information provider, watchdog, networker and advocate. Our flagship publications are the Bretton Woods Observer, a quarterly critical review of developments at the World Bank and IMF, the Dispatch, a biannual analysis of the World Bank and IMF Spring and Annual Meetings, and the NewsLens, a bi-weekly roundup of key news and critical viewpoints published about the World Bank and IMF.
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