Posted on 07/22/2022 3:29:20 PM PDT by delta7
Western governments have allocated well over $100 billion to prop up Ukraine in its war against Russia, with countless billions more flooding into the country at an increasing pace. Yet as each day passes, it’s becoming more and more clear that all of the money awarded and assigned to Ukraine continues to dissolve into a black hole of secrecy, corruption, deceit, and now, default.
On Wednesday, Ukraine finance ministry asked foreign creditors to accept a delay in its debt repayments, requesting a two year freeze on billions of dollars in Eurobonds. Per the Financial Times, “a rescheduling would amount to a Ukrainian default” on Kiev’s tens of billions in foreign debt.
The news comes just one day after the EU ambassador to Kiev insisted that Ukraine would not default on its foreign debt.
The junk-rated sovereign has a balance of about $25 billion of foreign debt, Bloomberg reports.
Despite all of the money coming in from around the world, Ukraine’s budget deficit has spiraled out of control. Zelensky’s office now claims to have a $9 billion monthly budget deficit, up 80% from just last month.
“Ukraine’s dollar bonds due in 2033 are trading around 18 cents on the dollar, down from about 25 cents at the end of last month and more than 80 cents before Russia’s invasion in February,” the Bloomberg report adds, highlighting the continuing decline of creditor confidence.
Ukraine estimates a 35 to 45 percent crash in its GDP this year. The government in Kiev is hoping to finalize the debt deferral by August 9, Reuters reports.
As we’ve covered in depth at The Dossier, Ukraine is losing both the economic war and the war on the physical battlefield, but the Zelensky government continues to dismiss the prospect of an armistice or peace deal with Moscow.
In addition to the government as a whole, Ukraine’s state-owned infrastructure and national energy companies have also announced their intent to default on international bonds. Earlier this week, Kiev announced that it has sold some $12+ billion in gold reserves since the start of the war.
The Western government creditors of Ukraine released a joint statement in support of Ukraine’s debt freeze, adding that they “will continue to closely coordinate and assess the situation with the support of the IMF and the World Bank.”
Translation: Western governments will continue to print huge amounts of cash and launch it in the direction of the Ukraine operation.
While this default will not stop the West’s perpetual Ukrainian money train operation, it sends a very loud $25+ billion signal to greater credit markets. What if other countries follow suit, citing other "national emergencies" and the like? Is the “Climate Emergency” now grounds for default?
They have to pay the Ghost of Kyiv and Tank Girl...
It looks like the Snowflakes will be paying off their own “student” loans.
Does anyone think the EU needs to add anymore sovereign basket cases admitted to the EU? There is a reason the Ukies were never admitted to the EU or NATO since their creation in 1991, the failing EU is broke and simply can not add another welfare state to it’s union.
The money has been spirited away. My understanding is that he’s being handled by others.
As stated.......”all of the money awarded and assigned to Ukraine continues to dissolve into a black hole of secrecy, corruption, deceit, and now, default”.......
We can name that tune in one note from the get go.
Levi@Levi_godman · 11h
▪️The Central Bank of the Russian Federation improved the forecast for the Russian GDP for 2022, expects a reduction of 4-6% against 8-10%;
The Bank of Russia lowered its key rate to 8%, lower than pre 24th February levels.
▪️The Central Bank of the Russian Federation will assess the feasibility of reducing the key rate in the second half of 2022;
▪️Annual inflation in Russia, according to estimates as of July 15, decreased to 15.5%;
The Russian Ministry of Defense reports that from July 5 to July 20, 4 HIMARS launchers and one transport-loading vehicle were destroyed in Ukraine
The Pentagon denies this 🌝
Lockheed Martin stock is back to pre 24th February levels so I‘d be denying it too. 😄
and that 10 percent for the big guy
Con artist.
Ukraine has always been and always will be a debtor state.
You know he knew a bad ass dude named Corn Pop?...
Ukraine War Increases Risk of Debt Defaults by Developing Countries-World Bank economist says countries that import a lot of wheat in Mideast and Africa are under extra pressure
WASHINGTON—Up to a dozen developing countries face increased risk of debt defaults in the coming year as the war in Ukraine boosts commodity prices and adds to existing Covid-19 pandemic-related pressures, a top World Bank economist said.
Even before Russia invaded Ukraine, highly indebted emerging and developing economies were on shaky ground, said Marcello Estevao, the World Bank’s global director for macroeconomics, trade and investment, on Monday. The pandemic had pushed up total indebtedness of the countries to a 50-year high, or the equivalent of more than 2.5 times government revenues.
https://www.wsj.com/articles/ukraine-war-increases-risk-of-debt-defaults-by-developing-countries-11648494626
Asking for more US tax payer money to pay-off Globo-WEF-IMF loans.
The kleptocrats in the EU and the United States are eating well on Ukie grift...
How about adding the poorest country in Europe to the EU?
https://en.wikipedia.org/wiki/Accession_of_Albania_to_the_European_Union
That’s right...Albania.
Or you could just let the Albanians, Ukrainians and whoever else wanders across the border to live off the government.
That’s the way the United States does it.
…and the EU will be be frozen this winter, Mercouris reports (mark 33) the second Gasprom NG pumping turbine is being taken off line and to be sent to Canada for rebuild….and they still haven’t received the original Siemens pumping turbine from Canada yet…..why is the EU comitting suicide?
Can I say again, Vlad keeps checkmating the West in…every…single…sector. Expect NG and gas to hit record highs, highs not yet seen. The Ukie war cheerleaders can thank vegetable head Joe’s sanctions and weaponizing the USD.
Tank Girl
The one from the movie? Jk
Ron Paul Institute? pffft!
Pour one out for John McCain, who cashed in his chips before he and his family were able to cash in on the Ukraine grift.
Biden will probably have the U.S. borrow a few more zillion and make the payments, or maybe pay them off entirely.
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