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Thank You Western Taxpayer: Russia To Accelerate $3bn Of Ukraine Debt
Just 13 short months ago - two months before then President Yanukovich was ousted - Russia lent Ukraine $3 billion (by buying their Eurobonds). As Reuters reports, the terms of that loan included a condition that Ukraine's total state debt should not exceed 60% of its GDP. As of last month, based on Moody's estimates, Ukraine has violated that condition with a debt-to-GDP of 72% (and will likely rise to 85% of GDP in 2015).. and so, according to Russian finance minister Anton Siluanov, "Russia has the right to demand early return of this loan." With European aid 'contingent on major reforms' and possibly taking up to 1 year, this leaves the good old IMF (i.e. the US and European taxpayer) to bridge Ukraine's 'gap' and ironically bailout Russia.
As Reuters reports, Russia can demand early repayment of the $3 billion loan at any time...
Ukraine has violated the terms of a $3 billion Russian loan but Moscow has not yet decided whether to demand early repayment, Russian Finance Minister Anton Siluanov was quoted on Saturday as saying.
Russia lent the money in December 2013 by buying Ukrainian Eurobonds, two months before Ukraine's then-president, the pro-Moscow Viktor Yanukovich, fled the country amid mass protests against his rule.
The terms of the loan deal included a condition that Ukraine's total state debt should not exceed 60 percent of its annual gross domestic product (GDP).
Last month, rating agency Moody's estimated that Ukraine's debt amounted to 72 percent of GDP in 2014 and would rise to 83 percent in 2015. It also said "the risk of default is rising".
"Ukraine has definitely violated the terms of the loan, and in particular (the condition) not to increase its state debt above 60 percent of GDP," Russia's Siluanov said, according to Interfax news agency.
"So Russia definitely has the right to demand early return of this loan. At the same time, at present this decision has not yet been taken."
But, as Bloomberg notes, the European Union "support" could take a while and it is entirely contingent upon tough reforms for Ukraine...
The European Union is considering a further 1.8 billion euros ($2.1 billion) in aid to Ukraine to help the former Soviet republic overhaul its economy, which has been ravaged by a separatist conflict in its easternmost regions.
The European Commission, the EU executive, said the fresh loans, on top of $17 billion already pledged in the International Monetary Fund-led rescue of the troubled country, were contingent on the Ukrainian government pushing through economic reform measures and fighting corruption.
The EU has provided “unprecedented financial support and today’s proposal proves that we are ready to continue providing that support,” Commission President Jean-Claude Juncker said today in a statement. “Solidarity goes hand in hand with commitment to reform, which is urgently needed in Ukraine.”
...
Disbursement of the aid, which must still be approved by the European Parliament and the EU’s 28 governments, will depend on Ukraine’s adherence to the conditions of the IMF program, which include fiscal consolidation, changes in the energy and banking industries, and other measures, the commission said.
This would be the EU’s third package of loans to Ukraine, following two totaling 1.6 billion euros approved last year. A final portion of 250 million euros from the earlier aid is due to be given within the first months of this year, according to the commission.
* * *
So - while Russia 'suffers' under the thumb of plunging oil prices and a tumbling currency crisis, a simple decision to push Ukraine into early repayment could leave Europe - having paid out their entire Ukraine bailout to Russia - asking for moar help from the IMF (i.e. The US Taxpayer) to keep the 'crucial' nation state of Ukraine from default.
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Onerous IMF loans are always referred to as "assistance from the IMF."
DEATH for Profit !
PutinObama need their war and you need to die for them
sign up and do your duty !!
Wrong. Putin does not need or want a war, and he is not the driviing force behind this lunacy.
PUTIN is an employee of the BANKS !
when are idiots like you going to get that through your thick skulls ?
He will do exactly what they tell him !
WAR is what they want and they NEED people like you to die for PROFIT !
Moron, you can command the people at the place, where you f*ck, this is your bedroom, but not here. Downvote u.
Russia is very happy that it has unloaded this always-begging-for-more-money neighbor.
Previously, for the maintenance of Ukraine, Russia was forced to pay 15 billion dollars per year. This is the amount of subsidies to Ukraine by Russia in the form of discounts on the price of gas and without war.
Now, all these costs will have to pay US and the EU, year by year.
Russia will save every year 15 billion, of which $ 3 billion will be used to support the Russian people, who are fighting in the Ukraine. And another 3 billion will be used to support the Crimea.
The Neo Cons threw up on their $600.00 white shoes when faced with controlling Iraq, now they want to take on Russia and China - 'dem boys sur' a little wacky in da head....
This shit with Russia started under a Progressive liberal US President with a Progressive Liberal Senate. Get you Neo Con definition correct.
Quite frankly this neo Con/neo lib shit is getting old. They are just two sides of the same coin. Nothing Con (servative) about either.
The proper term is New Bolshevik. Some call them the jewish zionist bolsheviks. All the same shit.
I sang the ball in December and no one paid attention.
The Russian sailors who were in France were called back, 400 guys!
The Mistrals were pro bag, France will have to pay a fine which would give to 4!
Because of that India will not buy Rafale.
The French are fucked.
Apparently the only thing that works in France is the Foreign Legion.
The Giovani, a friend of mine Italian who moved to Brazil two years is trying to bring the brother of Italy, is just waiting to finish the jobless and turn her brother, his wife and his son.
Giovani is a civil engineer, the architect brother, brother's wife Economist, were all unemployed.
Giovani set up a beer delivery trade, coal, water containers etc. and is doing well here.
The face is pasty and complains about the heat but, after five years unemployed in Italy gives thanks to God for something to do.
I can not close the ends of the comment but I believe that most ZH know what I'm talking about.
The rope is in the neck from the European Union, a misstep or Putin pulling the scaffold will all be fucked!
In my opinion Japan goes to the bag before.
hehe.
Q' why is the foreign legion one of france's best exports ?
A' because it's foreign.
Just a thought....
"In international law, odious debt, also known as illegitimate debt, is a legal theory that holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable. Such debts are, thus, considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts signed under coercion."
In other words, Putin should go after his former puppet (personally) to collect the debts.
Those debts were taken to serve the interest of ukrainans only . In other words , get your facts before posting drivel . It wasn't US where debts were taken to profit few corporates , duh .
You should get your facts straight. This puppet of Russia (that you are defending), stole enormous amounts of money for himself and his cronies.
Assuming for a moment that what you say is true, what does the average Ukrainian have to show for that money? And what did their former president have to show? He and his friends lived like gods with the stolen money while the average Ukrainian had little to show for it. Kind of reminds me of what is happening in russia these days. I probably don't have to remind you who benefited the most (financially ) from the Sochi games - hint, Putin's cronies.
You should get your facts straight. This puppet of USA - Poroshenko (that you are defending), already stolen more enormous amounts of money for himself and his cronies, more than stolen Yanukovych.
They stole all the gold of Ukraine and half of the financial assistance from the West.
There will be penalties. There will be penalties and a fine and the interest rate will be raised to 29.99%. Thank you, IMF serfs. Pleasure doing business to you.
LOFL
Way to go New Bolshevic POS's
Off topic but important. Sky news reporter ' FUCKS UP' big style , he explains that they used FAKE BLOOD at visual scene where cop allegedly shot on pavement in Paris. http://news.sky.com./video/1404175/where-the-policeman-was-shot ' unedited version' .
" The blood that was put there" 1 min,2secs into video . This video has been taken down from a number of sites.
He said that "'blood' was put there" by sympathetic artistic parisians to antagonize the dopamine receptors of the zombies in their city to a suitable degree. Nothing WB7 doesn't do.
FAIL
The West is running out of feet to shoot itself in...
Crimeans now have new police force. Those are send from Russia and now they are bullying people, not serving for their protection at all:
http://youtu.be/twe5bc6CWZo
https://www.youtube.com/watch?v=ETE8BoWTCrU
These videos - a great example of false propaganda of WH trolls, which is designed for the fact that the audience did not know the Russian language.
But I know the Russian language. In this video, the police showed great restraint. If in the US, some bastard dared to tell the police, "I'll break your jaw right now," that bastard was in handcuffs immediately. This is at a minimum. But perhaps he would have been shot on location. Russian police Bravo!
maybe they hold the script of US police in the hand? Do they match the US police in Number of killings?
No, really. US police - a world record for the number of killings of civilians. The United States also first in the world in the number of prisoners in prisons, for every 10,000 population. The so-called American democracy (this is from the word "military-police dictatorship") requires new blood and new sacrifices constantly.
East / West tension haven't been this great in more than two decades. Gorbachev says he's scared. That's saying something.
http://www.globaldeflationnews.com/gorbachev-warns-of-major-war-even-nuc...
This headline is misleading. Yes Russia has the ability to call a default, but so far they have refrained. Siluanov's remark sounded like a negotiating ploy, threatening but not actually calling the loan.
This wouldn't be an issue if those damn russians would just accept fiat.
Take the scrip, Vlad. Just beg their mercy, and you shall have it..
Too bad Ridley Scott jumped off the bridge, Kurt Cobaine died and the original Smashing Pumpkins broke up. We need a better distraction - bread and sacrifices!
E-volution. Never heard of it.
The aryan need to get clear of the zionistas.
Bet Darth Soros wishes a whole lot right about now that he never had initiated tipping the "teapot" with that coup last February!... We know Georgy... You're a fucking dick head!!!
In the Vicky Nuland tradition....
V. Putin w/ shit eating grin on face...
"Fuck the U.S. and the EU"!
So they exceeded the debt to GDP ratio? Well, isn't that the same excuse that 'Troika' uses to force austerity on everyone using the Euro?
Ukraine shut off the supply of electricity to Crimea a month or so ago until Russia started sending Ukraine more coal and other energy products. Things are relatively quiet now but, if Putin is smart (and he is), he will be taking steps to reduce Crimeans dependence on Ukraine for energy.