Posted on 06/24/2024 7:35:02 AM PDT by marshmallow
Private debt forgiveness is the only response to the country’s bleak economic situation, according to the broadsheet.
With Kiev’s gloomy financial prospects showing no sign of improving, one British newspaper is insisting that Western bondholders must forgive a substantial portion of the country’s arrears.
“Kiev was already in a complex debt situation going into the war, having restructured its private debt in 2015,” noted the Financial Times broadsheet in an editorial published Sunday. “The country must now balance borrowing to fund the war with managing old debt obligations.”
“Doing so is a tricky juggling act,” the paper’s editorial board observed, claiming substantial Western investment would be needed as the country rebuilds. At stake in current negotiations is $20 billion owed to private bondholders, just a small portion of the government’s $152 billion in overall outstanding debt.
Ukraine’s debt payments have been paused since the outbreak of the Russo-Ukraine conflict but are scheduled to resume in August. A recent G7-backed deal to reduce the amount owed by 60% was rejected by investors last week, who counteroffered a 20% write-down.
“The war has gone on longer than expected,” the paper noted. Multiple reports have revealed the United States intervened to quash peace talks between Moscow and Kiev early on in the conflict, with Volodymyr Zelensky eventually issuing an edict preventing the country from negotiating with Russia.
Washington’s sabotage of efforts to end the war was finally acknowledged by The New York Times and other mainstream outlets earlier this month.
The editorial proposes three options for Ukraine – a default, another pause of payments, and continued insistence on a more significant debt reduction. Another pause would see the interest on the debt continue to balloon, while a default would further damage the country’s reputation and distract from the country’s efforts on the........
(Excerpt) Read more at sputnikglobe.com ...
Zeeper Freepers should start a Go Fund Me Page for YouCraynee.
Why can’t Joebama just write an executive order adopting the nation of Ukraine as a pro-Palestinian Columbia University student, treat their national debt as a student loan, and forgive it?
Because Modern Monetary Theory and Bizarro World Order.
>> Zeeper Freepers should start a Go Fund Me Page
That’s right Zeepers! Go Fund Yourselves!
Absent a steady stream of massive 60 billion dollar aid packages to float the Biden/NATO destroyed Ukrainian economy the country will descend into economic collapse.
The Ukraine has pretty much become a welfare state dependent upon US and NATO economic support to fund even it's most basic functions.
CFR says of the $175B Congress has appropriated for their war, only $107B goes to the Ukraine government.
It's about the Green agenda and depopulation
A Marshall Plan For Building Back Green In Ukraine?
A Blueprint for the Reconstruction of Ukraine
Sustainable Development Strategy for Ukraine by 2030
What Should Ukraine’s Reconstruction Look Like?
What will it cost to rebuild Ukraine? And all sorts of infrastructure will need rebuilding
My ongoing refrain — nothing matters but oil.
Money is created by whimsy out of various central banks via a mechanism glorified by Bernanke as Quantitative Ease.
But oil . . . oil is joules. Nobody puts joules into engines by whimsy.
Ukraine’s oil consumption was about 324K barrels/day in 2008ish. It is now 204K barrels/day. Tanks burn a lot of fuel, but there aren’t many of them and when they must go long distances, it is by train. So war has not created big oil consumption in Ukraine, and it has been declining steadily since BEFORE the war began. As has its population.
As for the debt it faces, remember Greece. Huge loans were forced onto Greece by the EU, IMF and European Central Bank — with that forced borrowing put into place only, strictly only, to prevent sovereign default, which global systemics cannot endure.
You can expect new loans to Ukraine strictly defined / dedicated to keeping pre-existing loans current.
The only way out of such a situation is exporting oil, and of course Ukraine has none.
These reptiles bet on the Ukraine with their own money and they expect us to bail out their bad decisions.
LOL!!!
That will never happen.
The "sustainable" part relates to maintaining the flow of laundered US tax money back into the pockets of US politicians, including 10% for the Big Guy.
If the writer thinks Ukraine has a debt problem, he should check out the USA’s debt problem. Ukraine’s is peanuts.
“Mo’ Money! Mo’ Money! Mo’ Money!”
“only $107B”
“Only”. I guess it’s not your money. More garbage from the proud Ukrainian nationalist peanut gallery.
A thousand pardons. I thought most folks here don’t need to be warned about sarcasm when they read Congress has appropriated $175B for Biden to give away when we could be using it here to feed and build houses for the poor immigrants.
Oh gosh!
Giving this grifting little weasel a blank check to the US Treasury wasn’t enough?
I hope all you Uke supporters out there are cutting checks for your butt buddy Zelensky.
Where’s ‘Rev.mom’?
That war mongering harpie.
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