Add The Ukraine To List Of Countries On Verge Of Technical Default

Tyler Durden's picture

Update: the correct translation is that as of 5pm the debt has not been paid.

In this messed up post-Keynesian world which is so insolvent, it is virtually impossible to keep track of who is about to default, either technically, selectively, or really, who is already bankrupt, who is hyperinflating, and so forth. And while we all know that Europe and the US can at best hope to kick the can for a month at a time until finally they all have to face the truth, we are happy to bring to your attention the latest entrant to the technical default club: Ukraine, which will shortly join its former USSR satellite Belarus in the hyperinflation club. The fact is that the Ukraine is slowly imploding - the government had stopped Treasury payments for all budget expenses in an attempt to accumulate the cash needed to make a coupon payment on debt and which apparently investors are unwilling to roll. In all fairness, the news update indicates that the country just barely made the 5.3 billion hryvnia payment, but that may be it for now. What about the next one? Time to add some Ukraine CDS to that bankrupt sovereign basket, no matter how overflowing it may be at this point.

From Unian.net, google translated:

A few hours of Ukraine may find itself in a state of technical default

 Since Friday, September 23, TREASURY stop the flow of funds for all treasury accounts at the central and local levels.

 

This is the Ukrainian Center for entrepreneurship with reference to this derzhustanovi.

 

VTSSPD believes that this situation indicates an attempt to accumulate the funds needed to repay the September 28, two series of bonds totaling over 5.3 billion USD.

 

"As of 17.00 on Sept. 28 debt is not paid. This suggests that within a few hours of Ukraine may find itself in a state of technical default" - said in a statement.

h/t Yaroslav

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Azannoth's picture

It's news that they where ever solvent!

Ahmeexnal's picture

hmmm...ukranian stock exchange has no short ban?

Herd Redirection Committee's picture

Check out the latest from the Capital Research Institute: "Consequences of a Trillion Broken Promises"

http://www.capitalresearchinstitute.org

"In our world of ever-decreasing attention spans I better cut to the chase.  Greece is bankrupt, hence the solution for Greece is to declare bankruptcy.  Similarly,  America is a (bankrupt) de-industrialized nation well on its way to becoming a part of the Third World.  What marks the Third World, in my opinion, is the glaring wealth disparity, systemic injustice, and widespread corruption.  Corruption American-style is just a little more sophisticated.  Rather than bribe congressmen or government officials they are merely promised cushy office jobs once their terms are over.  See?  That way you accept payment for services rendered after wards, when you are out of the public eye, out of the limelight.

The way back, logically, to a prospering economy with a growing middle class then, is to bring back manufacturing.  Until that process is initiated we will continue the current cycle of ‘recession’ and (weakest on record) ‘recovery’.

The reason for being so forward is simple.  The opinions expressed here are rarely found in the mainstream media.  Why is that, you should be asking yourself.  Who doesn’t want to see America re-industrialized, and the Greece dilemma settled in a just and fair manner?"

Ripped Chunk's picture

What was the middle part again?

Oh, right, shake it off. I'm shocked by this news!

unerman's picture

It would be easier to take you seriously if you could spell.

Azannoth's picture

I always have problems translating my thoughts into the human language it's so inefficient

besides I don't give a fuk to begin with

jdelano's picture

On the spuriousness of the liesman levered euro tarp plan.  Neatly sums up why "the plan" is complete hogwash.

 

http://blogs.telegraph.co.uk/finance/andrewlilico/100012253/does-the-eur...

Raymond Reason's picture

Ah the grievous hryvnia again.  

ded_moroz's picture

Hey, Ukraine has been one of the favourites to default! How come we forgot about it.

Nascent_Variable's picture

We know French banks are overexposed to Greek debt, but whose neck is out there with Ukranian debt?

http://pdf.usaid.gov/pdf_docs/PDACP150.pdf

I'm still parsing through this, but it looks like the US made a big push to buy Ukranian bonds back in '09.

mcguire's picture

also, wasnt part of the rumor mill on the PM sell off that some eastern european central banks were liquidating??  any relation to this story???

 

PulauHantu29's picture

The median yearly wage in the United States is just $26,261, but the average American household is carrying $75,600 in debt.

Read more: http://theeconomiccollapseblog.com/archives/17-facts-that-prove-that-the...

AcidRastaHead's picture

Don't forget about the $47,000 that is each American's share of the National Debt.

Comay Mierda's picture

more like $550k/person in with unfunded liabilities (social securiponzity, mediscamcare, etc)

Ahmeexnal's picture

And the "more educated" they are, the more they owe.

A typical multi-PhD assclown is up to his eyeballs just on student debt.

gojam's picture

Ukraine or UK ??

Nevermind, the Greeks will be pleased if the Ukranians are the first domino to fall.

No doubt the story will go that Greece held lots of Ukranian bonds and their default has tipped them over the edge.

(cue sighs of relief in Eurozone, "Not our fault Guv")

Ineverslice's picture

Ukraine is weak!!!

Ineverslice's picture

L O L ......" ....I think it's time to put the hurt on Ukraine!"

PSEUDOLOGOI's picture

Ukraine not weak!!! I crush you...

Ancona's picture

"Ukraine not weak!!! I crush you..."

With my debt...

gojam's picture

Never heard the quote "And the last shall be first, and the first shall be last"

It's all pecking order. All countries will default but they will default in order of prestige and power. The USA, Germany, Japan, and the UK will be last.

Deadpool's picture

really??, because with QE I think your list already defaulted. Just haven't heard it yet on CNBC.

gojam's picture

QE is nothing but the US play to guarantee being last to default.

The4thStooge's picture

Would a Ukrain default spread contagion all over the world and lead to financial armageddon?

mynhair's picture

Who lends to them?  Georgia?

Will SPY claw back to 117.45?

korthaj's picture

UkrSibbank» is the third largest bank of Ukraine, the second among foreign-owned banks.

Shareholders

BNP Paribas – 99.9%

 

...Pokes the domino tile.

Dick Darlington's picture

They probably called their Austrian lenders to give some more to make it through the day.

AcidRastaHead's picture

Welcome to the party Ukraine.  Or is Ukraine like that party guest you're obligated to invite but pretty much ignore until they are at the door putting their coat on.  "Hey, glad you could come, sorry we didn't get to chat more."

Tsar Pointless's picture

Technically, we in the "West" are all in default.

Except for Iceland.

Deadpool's picture

the bread basket of Russia...Putin will ready the tank divisions.

schadenfreude's picture

Bread basket with nuclear weapons. Good luck with the tanks and Moscow

dick cheneys ghost's picture

How is South Korea CDS?..............

Dr. Kenneth Noisewater's picture

Technically default, that's the best KIND of default!

Sokhmate's picture

I'm guessing their export of Ukranian nurses is not that lucrative.

Momauguin Joe's picture

Charge them a baggage fee everytime they fly back from the Hamptons.

hunglow's picture

Russia must be happy.

PSEUDOLOGOI's picture

for now... maybe they are... but they have a number in line too...

When the shit hits the fan, watch Russia be unable to deal with seperatist movements and even out right Chineese land grabs...

Zero Govt's picture

 

"Add The Ukraine To List Of Countries On Verge Of Technical Default"

Ok TD, will do...

Ukraine : Govt-led country led into bankruptcy toilet (New)

Greece : Govt-led country led into bankruptcy toilet

Ireland : Govt-led country into bankruptcy toilet

...hold on, hold on TD ...wouldn't it be easier if you gave us the much smaller list of countries not led by their Govts and Bwankers into the sewer of bankruptcy?

I mean there's actually only a few countries in all history that have not been ruined by the State and Bwankers in bed together

Govt : the Biggest Social & Economic Mistake in a Mellenium

 

SheepDog-One's picture

Ukraine, Ireland, Greece, put together still tiny compared to just California looming default.

Zero Govt's picture

Look Tiny Tim said Europe couldn't/wasn't going to happen in America... what greater certainty is there in the modern World than a Tiny Tim guarantee?

...ok now I've passed The Feds new 27 word-checker Big Brother Blogging Software any ideas how to short the fuck outta Tiny Tim and California??

Ahmeexnal's picture

Scheisse-wigger paid off all of Kali's debt with Austrian notgeld!

falak pema's picture

It is a damning truth which has to be regarded in the face; all those who believed in the 'Orange revolution', promoted by the west, saw a type of corruption that matches that of Russian OLigarchs. The western model of crony capitalism is as demented as totalitarian soviet dictatorship. The so called capitalist cartel mafias run Ukraine, like Mehico...at the two frontiers of western civilization. From the halls of Montezuma to the shores of Tripoli... it smells, it smells of corruption, like during the time of Conquistadors and Crusaders.  We have learnt nothing.