Posted on 07/01/2024 6:18:09 AM PDT by marshmallow
Ukraine may declare a fiscal default as early as August if authorities fail to reach an agreement with creditors on debt restructuring, a deal that seems unlikely, British magazine The Economist reported on Monday.
Ukraine could default on its government debt within weeks — wrecking chances of fixing the damage done by NATO's proxy war with Russia.
"Ukraine has a month to avoid default," British magazine The Economist reported. "The IMF is keen for [Minister of Finance of Ukraine] Mr [Serhiy] Marchenko to negotiate a write-down, but a deal seems unlikely in the time available."
Bloomberg reported that Kiev was unable to strike a deal with creditors during the first round of negotiations regarding the restructuring of its $20 billion debt.
The Economist stressed that a Ukrainian default could be catastrophic for the country's long-term recovery.
Most foreign aid to Ukraine comes in the form arms supplies, the magazine explained, while financial aid amounts to only a small fraction of that and does not cover all of Kiev's expenses.
The publication also reported that Ukraine's private-sector creditors fear that debt restructuring will be the first attempt by Kiev's allies to shift "the financial burden of war, and the cost of reconstruction, away from governments and onto the private sector." There is also skepticism about long-term recovery plans after the crisis ends.
(Excerpt) Read more at sputnikglobe.com ...
It amazes me that China's credit rating is anything above dog poo status.
American tax payer money filling pockets
sure
more of your childish fear-mongering?
Ukraine will be fine, despite your (and Russia’s) fervent wishes
This looks like small potato territory to me.
Greece was in far worse shape (and still is) and the solution was additional loans. In the Greek case, the loans were not so much borrowed, as rammed down the throats of Greeks. They were forced to borrow via threat essentially of an oil blockade — that inevitably leads to starvation. The EU, ECB and IMF told them you WILL take these new loans, you WILL use this money to bring the old loans up to “current” status (meaning payments made on time, NOT retired), and you will do it no matter what your silly popular referendum says.
Ukraine will be forced to take loans to make payments on the old loans in exactly the same way — and it will be reported as salvation and success, and the additional loan burden will be waved away as inconsequential.
Which, btw, is why oil is everything and money . . . is printed from nothingness by central banks.
Not to worry, Uncle Joe will write them another check on our account.
We NEVER should have gotten involved in this ‘save the corrupt money laundry center’ for the world’s corrupt elites.
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