Officials from the International Monetary Fund and the World Bank are heading to Azerbaijan to discuss a possible $4bn emergency loan package in what risks becoming the first of a series of bailouts stemming from the tumbling oil price.
The Baku visit, which follows a currency crisis triggered by the collapse in crude, comes amid concern at the two global institutions over emerging market producers from central Asia to Latin America.
The fund and the bank have also been monitoring developments in other oil-producing countries such as Brazil, which is now mired in its worst recession in more than a century, and Ecuador. The oil-driven crisis in Venezuela has even raised the possibility of repaired relations between the fund and Caracas, a city IMF staff last visited more than a decade ago.
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WNU Editor: I have trouble seeing how the IMF and the World Bank can work together to stop oil-led defaults. The oil price collapse has meant hundreds of billions in lost revenues for oil producing nations .... and while countries like Saudi Arabia, Russia, etc. will survive, I have trouble seeing how countries like Venezuela .... with problems are far more deeper than just a collapse in the oil price, will be able to survive even if they do get a bailout.
Four billion dollars in bailouts to banker-buddies -- and they say Africa, Afghanistan and Russia are corrupt?
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