Ukraine Doesn’t Pay Debts

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Ukraine Doesn't Pay Debts

This article written by Maria Smirnova exclusively for SouthFront

Debt pit before the creditors of IMF in Ukraine is $ 72 billion. The Ministry of Finance has tried to change the critical situation. Natalia Yaresko requested private creditors to write off 40% of principal on government bonds.

A good gift for a country that likes to live in grand style, and not to think about the consequences of their own loans.

However, since we live in the real time and not in a fairy tale, such conditions were perceived very negatively by creditors. In particular, its firm position Russia expressed..

By the end of this year, Ukraine is obliged pay to the “aggressor country” three billion dollars.

Finance Minister Natalia Yaresko urges Russia to be equal basis with western European partners and take the same conditions.

The British edition «The Telegraph» at this time writes off incompetence and corruptness of Kiev leaders on the military conflict between Ukraine and Russia: «The Ukrainian economy has been destroyed because of the conflict with Russia. The country has lost a fifth of the entire economy, and its debt had reached an unacceptable level with the collapse of the national currency by 60 percent against the dollar.»

Against the backdrop of ongoing fighting with pro-Russian separatists in the east, GDP will shrink this year by another 8 percent – is the worst economic performance in comparison with the countries of Europe, Middle East and Africa. Production volume has fallen by as much as 17.8 percent in the first three months of the year.

Ukraine also will suspend payment of the debt on $ 1.1 billion with maturity in the next two months, the Ministry of Finance said.

Head of the IMF Christine Lagarde said that the agreement will “contribute to the restoration of debt sustainability” and called on all bondholders to support a deal to help Ukraine get on their feet. ”

After such a GDP decline we should not talk about the possibility of get to feet, and even walk on knees. Indicators of Ukraine beat all records. The World Bank predicts a fall in GDP in Ukraine by 7.5% in 2015.

A Kiev continues to imitate its importance on the world stage.

Prime Minister of Ukraine Arseny Yatsenyuk informed journalists that Russia would not enter into negotiations on the restructuring of the public debt of Ukraine.

“The world community will put pressure on them. They were waiting, we were not going to pay and declare a default. ”

The head of the Russian Finance Ministry commented on this situation in such a way “if they do not pay, we will go to court. But, nevertheless, the debt would remain. It is not written off losses, it is just that there will be some temporary process of reclamation of these resources. But this does not mean that we will forget. ”

Russian is a powerful state with enormous potential makes it clear to the entire civilized community on the example of Ukraine, that with RF must be considered, and to pay the bills.

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