Today the Ukrainian Finance Ministry has paid bondholders interest of $505 million against this background, there is a sharp weakening of the hryvnia, which, obviously, will continue to fall the coming fall, devaluing the already low salaries of Ukrainians.
The amount paid is a compulsory payment that Ukraine needs to put out twice a year according to the agreements on debt restructuring, signed by the former Minister of Finance Natalia Yaresko. This name Ukrainians will remember for a very long time. I have said before and say now: signed this US citizen agreement – not that other, as a form of modern slavery for the whole country.
Remember how last fall in the alleged debt relief PR all and Sundry – Yatsenyuk and Poroshenko in the first place? I have already said that it is not restructuring, but literally the Scam of the century. Explain on the figures.
the <small>Arseniy Yatsenyuk and Petro Poroshenko</small>
the <small>© AP Photo/ Andrew Kravchenko, Pool</small>
So, our debt of $18 billion was denominated in bonds with income of 7.22% per annum. Creditors agreed to write off $3 billion, the repayment of another $8.5 billion was deferred for 5 years – since a year has passed. The interest rate on the bonds has not decreased, but rather increased to 7.75%.
Now, about what Ukraine will pay for this “generosity” of lenders.
From 2021 to 2040 will act surprisingly cynical scheme of plundering Ukraine. In addition to the repayment of the principal of the loan and interest thereon, Ukraine will pay its creditors a portion of their GDP. Binding debt payments-to-GDP ratio, but still for such a long period – a unique precedent in the world of financial practice.
So, the terms of the creditors are as follows: if the rate of GDP growth will exceed 3%, the payments will amount to 15% of the gross domestic product. All that will be above growth of 4%, will be subject to a debt to 40% of each additional percent of growth. These terms will continue to apply upon the attainment of GDP of $125.4 billion, from the year 2021. And all this for the next 20 years.
the <small>in front of the International monetary Fund in Washington</small>
the <small>© RIA Novosti. Natalia Seliverstova</small>
Two and a half years after the coup, called revolution, Ukraine’s GDP decreased by 30%. If in 2013 we had a GDP somewhere on the level of Greece and Portugal – countries that are much smaller Ukraine, but still members of the EU, to 2016-mu we with your $90,5 billion GDP fell to the level of Sudan.
Calculation of the authors of the adventure is simple: buy when cheap, sell when expensive. The next few years, at least until 2021-th, the country will show sluggish growth of 1-3% of GDP, lagging behind the average growth rates of the world economy. But even in this period, the creditors the loser does not remain: prohibiting the debtor to repay the principal amount of the debt, they will annually receive one billion dollars just in interest.
So, if GDP growth reaches a 10% growth, Ukraine will annually pay the creditors an additional $5 billion That is only in the first year of the aforesaid twenty holders of the bonds with interest overrides previously charged Ukraine $3 billion.
After a deep fall, the economy will sooner or later begin to recover. If GDP starts to grow at an accelerated pace – and in fact, Ukraine has had periods when the economy grew at 5,5%, 7,8%, 9,5%, 12,6% in the year – payments to creditors many times over exceeds the amount of the withdrawal.
And for 20 years at this rate of growth, the payment will be about $100 billion, or an amount that exceeds the present annual GDP of the entire country. Imagine, a whole year, all 46 million people in the country — the whole of its business, all companies, all able-bodied citizens to work for private investment funds with a residence permit in offshore!
Thus, Ms. Jaresko has provided to Ukraine only two scenarios – either poverty or bondage. Ukraine will or the outsiders the next 24 years – a period almost equal to the country’s independence, or the economy starts to grow, but a significant part of the work of our fellow citizens will give a bunch of international speculators and the “vultures” that through such figures as Yaresko play along with the US and the international monetary Fund.
The current Ukrainian leaders do not care what price to pay Ukrainians in the future, the main thing is to provide yourself with a comfortable stay in power here and now. And then – damn it all.
the <small>Minister of Finance of Ukraine Natalia Yaresko, Prime Minister Arseniy Yatsenyuk and members of the Cabinet applauded the adoption by the Verkhovna Rada of the package of laws on restructuring debt</small>
the <small>© 2016 AFP/ Anatolii Stepanov</small>
