This page has been archived and commenting is disabled.
Ukraine Bonds Crash To Record Low After Economy Minister Asks For More IMF Bailouts
Ukraine bond prices have crashed to new record lows this morning - with even 2015 maturing debt trading at a 25% discount to face - following calls (admissions) by Ukraine's new (Lithuanian) economy minister that the government will need more IMF help on top oif its current $17 billion package. The country may need another $19 billion next year!!!
Ukraine's new economy minister, Aivaras Abromavicius, said on Wednesday the government wanted the International Monetary Fund to expand its $17 billion bailout package due to Ukraine's worsened economic outlook.
"We want to expand the programme given the difficult situation. Calculations are being made," Abromavicius said at a briefing, adding that it was too early to say how much extra cash would be needed.
The IMF, which is visiting Kiev this week for talks on the bailout programme with the government, warned in September that if Ukraine's conflict with pro-Russian separatists runs into next year, the country may need as much as $19 billion in extra aid.
* * *
So how long before the IMF has encumbered the assets of the entire (non-Russia) state?
»
- 5942 reads
- Printer-friendly version
- Send to friend
- advertisements -
And THAT is how you buy a country and its sovereignty.
No, that is how you blackmail the US, and Europe. New billionares incoming. 19 or 20 of them.
Good. I hope Ukraine is a lesson to the Balkans and Turkey about what happens to people when they try to become "European."
Indeed, I would bet that Turkey pivoting east has a lot to do with what Erdogan sees is the outcome of joining the EU, not just Ua but Greece and everywhere else - goodbye sovereignty.
To me, Brussels kicking out Berlusconi, the elected leader of Italy and replacing him with a Goldman Sachs type, was the supreme tell as to how this games works... I suspect this wasn't lost on Erdogan either, although it did take him a while to connect the dots.
Wasn't this yesterday's headline/article?
Without Crimean Offshore resources and fees from NATO for renting the Sevastopol Bases, and no coal to steal from Donbass, and a pipeline to be obsoleted within the next 5 years, what is the value of this shitty country anyways?
Let the EU bail them out, for free.
What's it good for? It's good for growing GMO/Monsanto corn and grains, using fertilizer from ME oil.
A pity that the EU won't take GMO. Not until the US shoves its trade agreement down Euro-slutty throats, that is.
I Expect the French farmers to burn down the EU offices before they allow GMO in their country.
Are you European ?
This is the ex Lithuanian Financial Minister right?
Nope - wrong Lithuanian. They all look alike so it's easy to get confused.
Aivaras Abromavicius is the new Ukraine Minister of the Economy. There is no economy, so it's mostly a honorary title.
Former Lithuanian finance minister Algirdas Šemeta is what Ukraine is calling the new anti-corruption tsar. From Reuters:
He's the errand boy, sent by grocery clerks, to collect a bill.
Ukraine did not give passengers on Malaysian Airlines Flight 370 a chance to bail out before having their air force shoot down the jet. Turnabout is fair play. Let the Ukrainian economy crash and burn.
So that's what happened to it. That dispells the story about it running out of fuel and landing in the Indian Ocean.
The USA is there with support until it isnt there - could happen any time: The Shah in Iran / Marcos in the Phillipines / Noriega in Panama
Ukraine has never been a sovereign nation.
And yet the global FX traders won't call BULLSHIT on...
a. Their currency - and its rise against the RUB.
b. Some NY asshole (earlier ZH post) calls for Russia to default in 2015, but not Ukraine? Riiiight.
I'd short all those financial cocksuckers in the G7 and EU and take my money elsewhere.
With apologies to 'cocksuckers', who at least provide some quid-pro-quo economic and free-market value. Even though they too manipulate positions and assets.
Sorry Ukraine. You are the new Greece.
Ukrexit, bitchez!
The new Greece... with shittier weather and bullets flying.
No, no, this is a lot worse than Greece... $17bn + another $15bn "help" coming in... too bad the Ukrainian people will not see a dime of that money... let's get real: Ukraine is a basket case, - broke, at war, gold looted, but that's not all yet - the IMF "help" essentially means one thing - ANY remaining REAL assets will be taken away from Ukraine and transferred to those in charge, that means ALL state companies, the best land plots etc. are up for grabs to pay for the "debt" that was not created by the Ukrainian people who in return will be getting social cuts in the form of massively reduced pensions, teachers' salaries and social payments... the song remains the same...
The bills are marked "Current Occupant" even though the address hasn't changed.
Wait until the Repo Man shows up.
Yes, localizer. And for consolation, all the Ukrainians have are nazis yelling "glory to Ukraine".
What an awful mess the EU/USA have made of this.
*glorious mess
That attitude will get you nowhere in politics.
A picture speaks a thousand words:
https://www.youtube.com/watch?v=rnh8zgCX4ws
This is SBU (Ukrainian security service) headquarters... I guess no comment is needed...
Ukraine will not pay the debts. Ukraine will always ask for money in debt.
Gimme money!!!!
That's what I want!!!.....
https://www.youtube.com/watch?v=g-nfIzhmSCc
Can this really continue ????
Patience. You are young. You may live to see the day this can no longer continue. And least in Ukraine. It will be started anew somewhere else shortly thereafter.
...Add a zero or two to those figures by this time next year, if they make it that long- shit always goes exponential at the end.
'May need another $19 billion next year'.....that amount wouldn't even run a Fed central banksters actions for 1 day.
Just take it from Israel. They created this disaster.
By the time the Bolshies get done with Ukraine, the citizenry will be begging to be part of Russia and will willing invade Israel to take back what was stolen from them.
They will default eventually. IMF may never see that money again.
That said, other regions of Ukraine have a growing separatist or at least federalizationist sentiment growing. First are the areas around the Carpathian mountains. Kharkov is also on that list. Recently a Ukrainian billionair laid off more than half of the steel mills workforce due to trade with Russia haulting (majority of its business sales go to). Tougher times are ahead and my people in Lviv are to be blamed.
Nobody expects it to be reapid. At least not with money. With blood and power, yes.
Bankers enslave countries with war debt. They corrupt their politicians and put their own people on the inside.
Ukraine has gone completely according to plan.
The ego drive and corrupt politicians are just willing fools.
Not one penny more until the stolen money from the IMF first trenche is returned by those scumbag bent politicians.
25% discount on near-maturity bonds seems extremely bad. Yet the Ukraine regime can only come up with the idea of asking the rich folks for another handout. Very creative.
They can save a lot of money and *really* help their bonds at the same time: Stop dropping anti-personnel bombs on your own people! Stop setting fire to your own industrial heartland!
I think they're getting encouragement to kill their Russian speaking comrades in the East by the main contributor to those IMF loans.
No cookie if they don't sit pretty like a good doggy.
What's with this "your own" nonsense?
Do you always identify with your oppressors?
The current regime in Ukraine is acting, with terrible force, as if Donetsk and other areas were part of hated Russia. Think about that. They should act as if they were part of Ukraine. This is the only political policy that could lead to stability and a United Ukraine.
Confessions of an Economic Hitman lives on
You can be a Ukrainian Finance Minister for $4200...
Strauss-Kahn becoming head of the central bank?
http://english.pravda.ru/news/world/10-12-2014/129265-yushchenko_ukraine...
It is always the same..only worse.....
Where does most of the IMF money come from?
Where does most of the money go or dissapear to after it is given?
What is pledged as collateral for the money?
Do those who ulitmately supplied the money get to collect the collateral?
I expect the citizens of the US (the money) and the citizens of Ukraine (the collateral) are the losers.
Ukraine has received only one additional point in the new Corruption Perception Index (CPI) 2014 by Transparency International, in comparison with 2013, and remains in the club of the most corrupt countries, according to a statement released by Head of the Communications Department at Transparency International Ukraine Olga Tymchenko early on Wednesday, Dec. 3.
Pretty much par for the course for this place to bring only one side of the story. Russia and Ukraine are equally corrupt. As in right up there with the worst. Ukraine looks fucked, but Russia aint too healthy either - and that for a country not (apparently) at war. Putin's oligarchs are syphoning more cash out than its CB can intervene for. Like rats scrambling off a sinking ship. And no, I don't believe in a good side and a bad side. I believe in a 1% fucking the rest. Be it Putin and his sycophants, Washington with its kleptocrats or Kiev with its puppets. Putting a guy like Putin on some pedestal should be anathema to this site.
But who cares? If everything ends up like Russia's last bankruptcy, it will hardly affect the majority. All that will happen is a reshuffling of Russia's assets to a select few. Probably not much different to a failing Ukraine.
Putin and the Russian elites want a place at the big table and a piece of the pie when Russia falls again. They will never use the military to engage the west,US, Israel directly nor will they allow their puppets to take action that is too serious.
The coming bankruptcy will be different, I believe, in that this time all the resources of Russia will be taken and kept with a brutal fist. It will not be let go of and any political revolt will be crushed. Putin and the elites are smart but they may be fooling themselves. At best they will be allowed to leave with some riches or act as puppets while holding key positions and betraying Russia. More likely they will receive promises (deception) that are forgotten when the time is right.
Russia was a nuclear power when it fell last time, that does not prevent what is happening.
Ignorant post
conflate Soviet with Russian Federation
Soviet was never a Russian consruct
You know nothing about this subject
I would say that Ukraine is beyound hopelessly corrupt, Russia much less so. I havn't been to Russia recently enough to make comparisons, but have have met many Russians that travel internationally, not rich folks just normal people. That in of itsself tells me much.
use banzai's "link": Ukr. rank: 136 from 175 Russ. rank 142 from 175. Yeah... looks pretty dismal for both....
"much less so" doesn't quite seem to add up it appears.
I guess it depends on what's important to you. Russia/Ukraine good people, good food. I dont really need much to be content.
I recall one woman, a schoolteacher that wanted to move to the US. There she had a nice place to live, quite comfortably from my POV. Her sister in the US worked pretty much 18/6 to live the Mercan Dream, and thus has become neurotically demented, as well as her husband. Ukraine had real problems 10 years ago but it was like the 50's in the US. What they wanted during the Orange/1st Maidan was to get rid of the theives. Alas we can see how it's turing out.
I do hold out for some hope. The internet was there for Orange and news was more tightly controlled. It should be more clear to 'common' folks just whom the internal enemies are, private discussions are core common than in the west. At some point I think there will be another pogrom.
One exmple comes to mind, I dont know if my info is current: there's no tax on real estate. If you own it, it's yours.
useless talkings
"Costs."
Take the loan out of the Defense budget. They wanted the Ukraine, now they can pay for it. And while we're at it, take the cost of the Iraq war out of their budget too. It wasn't "paid for with oil revenues" like they promised.
$17 billion this year, $19 billion next year, $21 billion in 2016, and onward until the Ukraine looks like Greece!
Bernanke should become central bank chief of Ukraine - all problems solved :)
C'mon Right Sektor, stop with the useless torchlit processions in vintage uniforms, take out your long knives and show the puppets how your spiritual great-grandfathers avenged Horst Wessel back in the day.
great-grandfathers of right sector people have been fighting on the german side....you are wrong.....
Ukrainians must be pleased at the prospect of all becoming local currency trillionaires in a few months. Life will be good.
US BACKED PUTSCH REGIME BLESSINGS FOR UKRAINIANS WHO THOUGHT WE WILL LIVE IN CORRUPTLESS STATE . OBAMA REGIME LED IMF GAVE BILLIONS OF DOLLAR IN BAILOUTS TO UKRAINE AND TAKE THEM BACK BY SELLING THEM WEAPONS TO KILL ITS OWN CITIZENS LET ALONE INTEREST WHICH IS BEING PAID BY SELLING UKRAINE ASSETS TO US OLIGARCHS . WHERE IS THE NEW IMPROVED LIFE FOR MAIDAN SCUM ? LOLOL .
Huilos need to get this in their cerebrum . Ukraine is a failed state now . Gone are those days when ukraine used to get billions from russia . Welcome to shithole
http://www.ft.com/cms/s/0/9a3efede-7fc5-11e4-acf3-00144feabdc0.html#axzz...
Are they still jumping?
Well yes especially on social networking sites you will come across many with blue and yellow color flags exhibiting nationalism and spouting anti-russian chants including people from Canada , land of demoncracy etc etc . Little do they know that their media is under cia control . Now Porshenko wants to join nato . That was the only motive to bring regime change in Ukraine to extend nato further .
Russia must make Ukraine formally default on its loans. Only then will the Europeans understand that they must either come up with the $100 billion in taxpayer money or leave Ukraine to Russia.
What Russia is doing is even better. It has the $3 billion "golden loan" it can call in at any time. The Europeans are now understanding that Russia has the means to call default if it wants. Now they must beg Russia not to cause default.
$3bn is actually + $4,7bn old gas debt which is over $7bn, all in all Ua has to pay $17bn to Ru.
Now, after (Westinghouse inflicted)damage on the reactor No. 3 in Zaporozie Ru will supply to Ua electricity against prepayment.
"We're gonna need a bigger bailout.*"
* - The term "bailout" is a trademark of Greece, all rights reserved.
Here is the opinion of two Russian professors from Sputnik International: http://sputniknews.com/radio_burning_point/20141203/1015464339.html
"As far as I know, the Minister of Finance and the Minister of Economy are the positions that should be responsible for the money flows from the outside and for the monetization of the Ukrainian economy, which is actually half destroyed, on the other hand. So, that means that, probably, those foreigners would be both the controllers of the money flows and, on the other side, these persons should be blamed tomorrow for everything bad that occurs in Ukraine.
Usually, semi-independent states are doing this. We can remember the Russian example when the Russian privatization was done by the foreign hands under the foreigners’ advice. The result of the privatization was the illegitimate business in Russia. And it is a problem we are suffering up to now. In some other countries the foreigners are usually invited not because they would be sharing their professionalism, but also their interest. And any executive political player would first of all have his own interest, and not the interest of the country he is working for, because foreigners should be loyal to their native states and not the state that hires them."
Also:
"...Just one detail, I want to remind you of some of those advisors who were invited by Anatoly Chubais form America to assist Russia in its transition to the market economy, in privatization etc. It was one of the most famous scandals back in the 1990’es when the two individuals from the Harvard Institute for International Development – Shleifer and Jonathan Hay – when they were working as the advisors to the Russian Government, when they were advising the Russian Government on how to transfer Russia into a civilized market economy, what did they do?
Their program received $58 million from the US Government to assist Russia in the privatization reform. And, of course, it was such a temptation for them when they had some inside information about what enterprises, what factories were supposed to be privatized. It was such a temptation for them that they decided to use that inside information to enrich themselves. They invested money into those enterprises that were supposed to be privatized, basically, to invest their money and get back their money after the privatization of those enterprises.
What was even more interesting is that they didn’t invest their own money, they actually invested the money of the US Government – the money which was supposed to assist Russia in its transition to a civilized market economy. It was an absolutely incredible scandal. "
"Russia realized that we made huge mistakes back in the 1990’es. That’s why Russia decided not to repeat those mistakes. Unfortunately, Ukraine didn’t learn from our mistakes. And once again, looking at Ukraine back in the 1990’es and at Ukraine today, I have a feeling that this is the kind of groundhog’s day, when the mistakes are being repeated again and again, and nobody wants to correct them."
Natalie Jaresko, an American citizen and an ethnic Ukrainian, is the new minister of finance. Ms Jaresko has worked in Ukraine for more than 20 years, and before that she was holding various positions in the US State Department.
She also has a Harvard education from the school that the fore mentioned one morphed into when it was shut down, imagine that!
When nobody wants anymore credit, even bonds can't put support under free-falling prices.
http://www.globaldeflationnews.com/bulls-bears-and-jaguars-a-deflationar...
Fuck Ukraine!
Given that the shale boom (bubble) is collapsing, Ukraine's shale potential has disappeared. Its pipeline network was supposed to be privatised for sale to Western investors but they probably won't be interested now. So what does Ukraine have to offer the IMF? Nothing.
Ukraine's best chance is to default on loans to the West and make peace with Russia.