This page has been archived and commenting is disabled.
Add The Ukraine To List Of Countries On Verge Of Technical Default
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
»
- 17635 reads
- Printer-friendly version
- Send to friend
- advertisements -
The Soviet Union may rise again!
History repeats itself, ne pas?
Scary....
Not a surprise. Ukraine is hypercyclical, very dependent on steel exports which plummet in both volume and price in recessions.
I see a story on the wires dated 8:40 pm says they paid it after 6:30. I assume that's within the grace period. But if they're freezing all state payments for a week before a big redemption, they are on the edge. And no one will help them. Who would help the kind of idiots who actually freely elect yanukovich? Russia wins again. Squeezing tighter as we speak.
By the way, isn't technical default a nonmonetary default? Like for example failing to publish audited accounts if that's promised in the prospectus? This was a near default, no technical involved. Likewise the Greek coerced bond swap is a default, not a technical default. It's a failure to pay in full on time. At least that's the way the industry uses the jargon. Media and politicians seem to be misusing it.
It's coming apart and they can't control it. Too many countries where doing the same thing that the big ones where doing. If I was in charge of Germany or any of the European countries (I don't say the US because there default would be real nasty because alot of their debt is owed to it's people) but especially germany, I would bunker my banks and allow this to happen. Yes there will be pain but not as much pain like the other countries will be feeling.
ahhh ZeroHedge, ZeroHedge - your editors are so yellow that I wanna puke
you twist figures beyond any recognition:
ZeroHadge screams: "payment of $ 5.3 BN" Fact = "payment of UAH 3.5 BN" (eq. of about $430m)
ZeroHadge screams: "payment not made" Fact = "payment made"
ZeroHadge screams: "Ukraine default close" Fact = "Ukraine has large cash reserves, and comparatively low debt/GDP ratio"
Dude, your the only one screaming :)
But I guess that if a guy in a basement screams, and nobody hears........ you get the drift.
Dude - I'm not talking about opinions (forget my 3rd statement, it may be counted as an opinion)
I'm talking about facts (1st and 2nd statement). And ZH lied by stating incorrect figures (way incorrect by a factor of 10)
So now Ukraine won't be invited to join the EU?
Oh wait, default isn't anything Goldman Sachs can't fix in a jiffy, for an up front fee paid in full. Plus, it's not like financial mismanagement is any barrier to EU entry.
Welcome Kiev! All your debts now are belong to us.