Saturday, May 16, 2009

ANALYSIS-Sri Lanka IMF war row shows geopolitics matters

By Peter Apps, Political Risk Correspondent

LONDON, May 15 (Reuters) - Sri Lanka's apparent difficulty securing a $1.9 billion IMF loan -- with its conduct in its civil war becoming a key sticking point -- is a rare glimpse into how geopolitical importance can influence multilateral aid.

While fellow troubled emerging economies Ukraine and Pakistan have also had their disputes with the International Monetary Fund, many investors feel they are simply too geopolitically crucial to be allowed to default. Full text