Credit for the repayment of the loan. The IMF de facto acknowledged Ukraine bankrupt

© RIA Novosti / Stringreplace in Photobacterium of Ukraine Petro PoroshenkoCredit for the repayment of the loan. The IMF de facto acknowledged Ukraine bankrupt© RIA Novosti / Stringreplace the image Bank

During a visit to Kiev in mid-September, the IMF, put forward another batch of impossible conditions, suggested that the Ukrainian authorities to take the so-called stand-by loan of five billion dollars. What this means for the country and what the prospects now open to the public — in the material RIA Novosti.

Country, ready to eat

Ahead of the visit, the analysts explained that the key theme of the upcoming talks — the situation with the next tranche of $ 1.9 billion, which Kiev had hoped to receive before the end of the year. No one doubted that this time the lender will require a final fulfillment of all the conditions under which was issued $ 9.7 billion in the period from 2015 to 2017.

Indeed, the IMF reminded Kiev about the need to increase gas prices for households (by 23% this year alone) and to conduct anti-corruption reform (the project was agreed earlier).

But, in addition, the Foundation has made two new demands: Ukraine needs to create a balanced budget, and to reorganize the State fiscal service (GFS), combining it with tax and customs.

This course fully meets the main principle on which the IMF operates in countries experiencing economic crisis. The Fund provides loans and when state debts are enormous runs to Western investors. Those buying for a pittance a rapidly falling state assets. This scheme is called the «Washington consensus», and she is already more than a dozen years.

GFS — the final frontier, not allowing Western «friends» of Ukraine to take over a national treasure. Immediately after the Foundation representatives left the country, local media reported that the SFS have uncovered a fraud with the purchase of state company «Centrenergo» coal 51 million hryvnia from companies that not only never engaged in its production, but was involved in criminal cases of various frauds.

It is noteworthy that the auditor «Tsentrenergo» — the Polish branch of the British auditing company Ernst & Young. It auditors must have learned that counterparties of the company’s coal contracts are dummy-lived.

And that’s not all. The IMF offered Kiev to take the so-called stand-by loan in amount of five-six billion dollars for a period of 12-15 months.

Short-term stand-by loans are intended for debt repayment for existing liabilities if the debtor is having problems with payments due to lack of Finance.

To refuse this offer Ukrainian officials simply could not. The promise of earlier tranche have not arrived into accounts of national Bank, and to service already received from the IMF loans is required. Their money is not Kiev, and we have to pay the old loans through new.

Just in the next five years Ukraine will have to pay on debt is almost $ 33 billion. In 2019 — five billion, in 2020 — 5.9 billion in 2021-m — five in 2022 and 2023, 4.1 and four billion respectively. After that, if we do not take new loans, the public debt will decline from the current 76 to 43 billion dollars. This is excluding stand-by loan from the IMF.

In fact, at Kiev stand-by credit, the IMF acknowledges that Ukraine is bankrupt.

The rapid impoverishment of the country, falling incomes and a reduction in the number of jobs force ordinary Ukrainians to flee to neighboring countries. Most goes to seek a better life in neighboring Poland and Russia.

«We have a really catastrophic situation is about one million Ukrainians go every year», — said the head of the Ukrainian foreign Minister Pavlo Klimkin on air of ICTV TV channel.

At the moment in Poland is, according to various estimates, from 1.4 million to two million Ukrainians. In Russia, according to the Ministry of foreign Affairs — about three million. Leaving and in the Baltic States: Lithuania, Latvia and Estonia are legally working about 75 thousand illegal — more.

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