Page 74 - Ekonomija i Biznis_oktomvri 2016.indd
P. 74
FLASH WORLD JIM YONG KIM IS ONCE THE IMF WARNS:
AGAIN THE PRESIDENT WE ARE LOSING
THE HIGHWAY OF THE WORLD BANK THE BATTLE WITH
EGNATIA WILL BE PUT DEFLATION
UNDER CONCESSION
According to the sources from The executive directors of In the new assessment of the
the Agency for Privatization the World Bank unanimously global economic conditions, the
of Greece (Hellenic Republic approved the second mandate International Monetary Fund
Assets Development Fund), of the current president Jim warns that many countries in
Greece is about to announce Yong Kim. As indicated in the the world lose the battle with
a tender for long-term Announcement, Jim Yong Kim deflation and low growth.
concession of the highway has been reelected due to his According to the report, the
Egnatia in order to unlock the achievements in the reform deflationary pressures are of
new credit tranche to save the and in the management of external nature, mostly through
creditors against bankruptcy. the administration, as well as the fall of prices of raw materials
The Agency for Privatization due to the recognition of his and finished products. The
will demand a concessionaire leadership and his vision. In the continuous law inflation puts
with 35 years of age, and there announcement from the bank, to test the ability of the central
are still no projections about two ambitious goals which banks to efficiently use monetary
the expectations of Greece in have been realized in Kim’s policy in order to encourage
regard to the compensation first mandate have been noted: demand, considering that the
from the new concessionaire. imposed obligation for complete interest rates are too low already.
Greece hopes that with this eradication of extreme poverty This leaves very little space to
move it will appease the by 2030, as well as promotion of banks for efficient use of this
creditors for a positive report for the so called shared prosperity, measure from the monetary
implementation of the reforms which assumes a growth of policy. For this purpose, in the
whereby an opportunity will be the income of the poorest Report there is an indication of
provided to get new 2.8 billion 40% of the population in all the example of the American
Euros from the total determined developing countries. Before federal reserves, as well as of
86 billion. The highway Egnatia Kim’s reelection, the excessive the European Central Bank and
is one of the most important cuts in administration and the the Central Bank of Japan whose
Balkan communication links, operating costs of the bank interest rates became negative.
which is spread at a distance of were widely criticized, however According to the guidelines of
670 kilometers from the Greek- despite of this, Jim Yong Kim was the IMF, the governments of
Turkish border, all the way to the the only registered candidate the countries should become
port Igoumenitsa. The highway for the function. The group of more actively involved in the
is one of the most expensive directors in the Announcement eradication of this problem by
highways in Greece, built on point out the administration growth of consumption, reforms
inaccessible terrain, with many reform as Kim’s success whereby and policy of distribution
tunnels, bridges, aqueducts, and savings of 400 million dollars per of income, thus to help the
it is the main cargo link with the year were realized, which have central banks to cope with the
western part of Greece and with been reconverted for support of deflationary crisis.
the tourist destinations of the the bank’s projects.
Ionian Sea. Miroslav Sazdovski
74 October 2016
