US Taxpayers To Fund Ukraine Bailout With Bond Guarantee

Tyler Durden's picture

Last week we reported that as part of the latest "check kiting" bailout scheme, Greek pensioners (and now utility companies) are being raided by the Greek government so that it can repay its debts to the IMF, which in turn would go ahead and fund a part of the recently approved $17.5 billion bailout of Ukraine, which then would have the money to pay its debts to Russia... and the IMF. And, as we also noted, "The only question is how long will it take the current puppet government to syphon off enough funds into various illegal ventures and offshore accounts before the IMF has to step back in a la Greece with bailout #2."

Turns out the answer is about a week, because as Reuters reported earlier today, CCC-rated Ukraine is preparing to issue more debt, debt with a Aa+/AAA rating because it will come with the explicit guarantee of the United States of America.

From Reuters:

The Republic of Ukraine has sent out a request for proposals (RFP) to banks for a new US government-guaranteed bond, according to three sources.


This is the second time the US government has thrown its financial backing behind a Ukrainian international bond issue.


In May 2014, the US guaranteed a US$1bn Ukrainian bond maturing in 2019 through the US Agency for International development.


That bond was given a credit rating in line with the US sovereign at Aaa by Moody's, AA+ by Standard & Poor's and AAA by Fitch. This is a far cry from Ukraine's credit rating, which stands at Caa3, CCC and CC with the same three agencies.


The RFP comes just over a week after Ukraine agreed a new four-year US$17.5bn bailout facility with the International Monetary Fund.


As part of the IMF agreement several institutions - including the European Union, World Bank and US - have agreed to provide around US$7.5bn between them, according to analyst estimates, to the war torn country.


It is not clear whether the US-backed bond forms part of the US contribution.

One other place that also issued bonds with a US guarantee was Egypt. And everyone knows just how the US-inspired coup to put the Muslim Brotherhood in power turned out.

In other words, after raiding Greek pensions with the IMF's blessing, the Kiev puppet government is now going after the "full faith and credit" of the US... backed by its taxpayers.

In yet other words, the latest Ukraine "bailout" is courtesy of you, dear US taxpaying reader.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
laomei's picture

Oh gee, like we didn't see THIS coming at all, no sir.  End this sham already, please, just get the war started so the survivors can have a chance at a real life again.

kowalli's picture

nothing new, USA pay for Nazi

Manthong's picture


The ponzification of the dollar and global credit will continue until the moment it does not.

Until then, party like it’s 2007.

cossack55's picture

Great! Hunter is getting a bonus.  Hip, hip, fuck it.

Buckaroo Banzai's picture

Fine by me, as long as they send over a few thousand hot blondes as collateral. It would certainly be a better deal than I am getting lending to the US government.

Four chan's picture

obama writes the checks, no balances.

insanelysane's picture

Instead of CCC-rated Ukraine it will soon be CCCP-rated Ukraine.  At least the Crimea.

Latina Lover's picture

No big deal, the USSA is merely guaranteeing the issuance of bonds to repay interest due on previous bonds and bail out insiders like Biden's baby cokehead puke.  Also, the USSA has to keep the local criminal oligarchs happy, lest they switch sides and cut a deal with  Putin.

The average Ukie will continue to get fucked, good and hard, until they remove the USSA leaches/oligarchs from their body politic.

grgy's picture

Their goal is to subjugate Russia to protect the US dollar and maintain world dominance. Propping up their puppets in Ukraine is part of the process.  The last thing the US wants is the Minsk2 agreement to work.  Better to get the war going again, get Russia to intervene and then save the world by attacking Russia. It's sick but the US is getting just too predictable.

angel_of_joy's picture

It's only natural. You know the rule: you break it, you own it ! Well, US fubared Ukraine so... Now, if the Ukraineans are dumb enough to fight and die for the interests of US combined with those of the local oligarchs, it's their problem. They won't win shit; they'll only end up dead instead, and in numbers. However, I haven't seen such an overwhelming enthusiasm from their part during the last recruiting episode. So, if the masters decide to throw a war, and nobody wants to fight it, then what ?!

Pinto Currency's picture



The day before the revolution in the Ukraine:

Now fund the war.

strannick's picture

Backed by the government means backed by the military, as force and destruction is the only influence US has left.

Mike Masr's picture

"then save the world by attacking Russia"


And that's when the weather report will be a sunny 200 million degree day in all American and Russian cities. The fallout from 20,000 nuclear warheads will make life difficult for all but cockroaches and aliens.  

Better buy some good sunscreen!!

Latina Lover's picture

You are too negative Mike Masr. I'll bet the termperature will never go above 10,000 degrees, and  we will have plenty of protein from eating cockroaches.

Urban Redneck's picture

The average Ukie is too dumb to understand that credit enhancement costs money for the borrower, it is never free.  So what is the Ukrainian government (borrower) "paying" to Uncle Sam for the credit enhancement?  

If they actually understood the answer to that question, Porky Pig would be rotating on a spit, instead of spitting on the masses.

Newsboy's picture


It's come to this, and OVERTLY, and still the nerve to blame Russia?

kowalli's picture

They don't have a choice, they need to blame someone. It's a core of USA policy - they can't blame USA.

McMolotov's picture

It's pretty funny how we don't give money to Detroit, a city right here in our own country that could easily be mistaken for someplace in eastern Ukraine that's been shelled into ruin.

Where's Kanye to tell us how Obama hates black people?

ThirteenthFloor's picture

Adds new meaning to American Beauty and the Nazi neighbor.

FMOTL's picture

nothing new , USA pay for ashkeNAZI, FIFY

Lex_Luthor's picture

Ukraine just got a world reserve currency. they can print whatever they need, just like U, S and A

Perimetr's picture

Just warms my American heart to see our Manchurian Candidate president handing money out to NAZIS.


I haven't felt this good about the USA since we were napalming villages in Vietnam.

man of Wool's picture

You started this war. You can fucking well pay for it.

dbTX's picture

Who in the U S government has the authority to do this?

NitneLiun's picture

The United States Congress? Oh wait, they've been executive-ordered and administrative-lawed into irrelevance.

11b40's picture

The Congress is owned by the dual citizen lobby....lock, stock, & barrel.  Neo-cons are firmly in control of both parties.

Four chan's picture

the congress gave their balls and integrity away to the fed in 1915.

and 100 years on we are utterly bankrupt on every level.

Itchy and Scratchy's picture

U.S.S.A. humanitarian exceptionalism hard at work! Cue the rape & pillage music!

Fun Facts's picture

I'm working for the Khazars.

Jack Burton's picture

Fun Facts, See my post below!

Creepy A. Cracker's picture

So... tired... of... it.

Jack Burton's picture

"Yesterday, Igor Kolomoisky, appointed by Kiev junta governor of the Dnipropetrovsk region, the billionaire, an Israeli citizen and owner of a large number of fascist battalions, captured head office of state enterprise "Ukrtransnafta". This strategic state company controls all oil pipelines in the territory of Ukraine. Capture was carried out by using 40 militants armed with batons and rifles, along with the invaders to the office came Gennady Korban, business partner of Igor Kolomoisky, Gennady Korban many years carries out military takeovers in Ukraine for business empire of Igor Kolomoiskiy"

American taxpayers now will be forced to fund this sort of thing. Read the above! These facts never make it to CNN. I wonder WHY?

Latina Lover's picture

Excellent points Jack, just more proof that the CNN is the first among  media whores for the State Department.  The Good News is that the USSA pressitudes continue to lose the information war, hence their endless screaming to block RT and suck up for more funding.

Give it another year, and most thinking Europeans will be sick of the Ukie puppets and their USSA Gepetos .The USSA is a slowly sinking ship, with the rats starting to abandon in in favor of China and Asia.  Russia is perfectly positioned to grow with China, thus the reason why the USSA needs the Ukies as shock troops to take out Putin and conquer.   The Empire of Chaos will fail but, alas, will cause a great deal of trouble in the meantime.

unicorn's picture

"Give it another year, and most thinking Europeans will be sick of the Ukie puppets and their USSA Gepetos ."


few days of shooting on maidan were enough to understand...

HowdyDoody's picture

But, but, but ... Russian saboteurs(*) were going to take over the building and he prevented that!

When asked what the occupiers were going to do, reporters were told they were going to be burning financial documents. Hmmm, interesting.

* - these would be the special invisible Russians forming part of the invisible Russian forces that have invaded Ukraine about 20 times.


Latina Lover's picture

The Russians  do not need to invade the shitty Ukraine. The Ukies are doing a great job of destroying themselves.

HowdyDoody's picture

Kolomoisky meets Nudelman June 2014 in a meeting at Odessa to discuss how to protect US interests in Ukraine.


Volkodav's picture

Are west regions Ukraines still jumping?


Russians have this saying: 

"hop before jump"

TheFourthStooge-ing's picture


Are west regions Ukraines still jumping?

To imagine more funny than news from Lvov is not possible. Deputy in Verkhovna Rada now is demands more rights, special priveleges to western regions Ukraine.

So jump they do in demonstrations around this obscene monument of Stepan Bandera:

Even while playing this their jumping anthem:

Banderatards mental derangement syndrome.

JohninMK's picture

Small problem, the 'Russian Saboteurs' were actually a team appointed by the President Poroschenko.

Pure co-incidence that Poro happens to be a competing oligarch.

This is the start of the oligarch wars in Ukraine, they all have their own militias so it will get messy.

wchild's picture

Nice!  It's a damn shame what is going on over there.  Likely a look into the future of all Nations

turnoffthewater's picture

Jack, You're not talking about this:

Good find, thanks for your posts here!

This guy looks tired of working for a a**hole with 3 passports.

ted41776's picture

at least buy me a drink first

Rainman's picture

whatever ... just throw it on top of the other $100 Trillion in USSA debt that will never be paid off.

All is chosen's picture

Serfdom, it's a cast iron guarantee.

Yet you still have the ultimate 'get out' card - stop reproducing!

Bunga Bunga's picture

Yeah, pay you stupid American taxpayer. Russky is laughing his ass off.

Volkodav's picture

Russia 13% flat tax

Russia's Flat Tax Miracle  The Heritage Foundation:


yogibear's picture

Maybe Russia should charge 500% interest and start asking for gold as payment, Let's see the US sqirm when it has to pay real money instead of fiat.