Ukraine: Cui bono?

[Magda Hassan]

A Googlish translation from the Spanish original. What's the Ukrainian word for chutzpah? :: ::face.palm:: ::rofl::

Ukraine: The recognition of bankruptcy

Posted by nahiasanzo â‹… December 13, 2014 â‹… 1 Comment
Filed under ecnomia , IMF , Russia , Ukraine , EU
Original: New Russian

Why the German finance minister contacted his Russian counterpart?

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The economic situation in Ukraine is so serious that the German Minister of Finance Wolfgang Shäuble telephoned Russian Finance Minister Anton Siluanov to ask the Kremlin will defer the payment of 3,000 million dollars paid to Kiev last year. Interestingly, not long ago that Schäuble spoke with great satisfaction the miraculous effect of sanctions: "There is no way to avoid the facts. The ruble lost value, the Russian budget deficit grows and economic development leaves much to be desired ".
It should be difficult for a State under sanctions provide financial assistance to another State: already have enough problems to contend with. Even the British Chancellor George Osborne expressed surprise at the demand, saying, as recorded by The Financial Times, the European Union requested aid to Russia while imposes sanctions for their actions in Ukraine. This is actually the recognition that Europe is unable to resolve on their own, without the participation of Russia, the country's problems. It is no exaggeration to say that Ukraine is bankrupt. Announced the minister of Economic Development and Trade Aivaas Abromavicius. "Essentially, the state is bankrupt, so simply unrealistic to expect can develop any real stimulus program beyond a declaration of intent" he said at the committee meeting economic policy. Since April, Ukraine has received a total of 8,200 million IMF and other international creditors. Where has the money gone?
The war in Donbass can not explain everything: Ukraine spends 1% of its GDP in war. "The Ukrainian Army is relying mainly on civilian efforts, including private citizens who send food to the front and uniforms for the soldiers, and several businessmen who send weapons, including heavy weapons," writes Richard W. Rahn, the Cato Institute and President of the Institute for Global Economic Growth in The Washington Times. He adds that the United States spends 3.5% of GDP in military spending, while Russia spends 4.1%. The expert believes that part of the Ukrainian budget has been lost in vote-rigging and other machinations. That may be why the mission of the International Monetary Fund recently visited Kiev left the city without ensuring the continuity of the bailout. The diagnosis is that Ukraine is on the verge of bankruptcy. IMF experts estimate that Kiev will require, in addition to the credit of 17.000 billion already approved for next year, 15,000 million urgently in the coming months, if not weeks. Dropping the higher than expected GDP and the fall in exports to Russia have revealed the limitations of the program. The latest installment resulted in evasion of capital and the reduction of central bank reserves. The situation is complicated by the fact that IMF rules prohibit the continuation of a bailout if there is no confidence that the State concerned is able to meet its financial obligations. So the next tranche of provisions still put off. On Tuesday, the finance ministers of the EU discussed in Brussels third credit line to Kiev along with a 1,600 million granted earlier. Furthermore, Berlin proposed increasing aid package together with the United States to 4,000 million. "All this may come too late," says Rahn. "Last spring, a large number of international experts and economic advisors, including the late Kakha Bendukidze, chief architect of the economic miracle of Georgia, developed a recovery plan for Ukraine which was almost completely ignored. In Ukraine no shortage of good economists who know what to do, but different make politicians do what is necessary, especially when economic reforms perceived as contrary to their interests in the short term. " This expert does not give the Ukrainian economy hopes for recovery, which means that any financial assistance or loan may end plundered by those now in power. The collapse is inevitable. If the situation is allowed to take its course and flexible shell that Putin take control in Ukraine, this will incite further aggression in neighboring countries, "insists Rahn. As is customary, other Western expert reaches the wrong conclusion from the correct data. Putin's aggression expressed today in a fabulous credit: 33.000 million just last year. Both Ukraine and the West believe it is the duty of Russia attend the Ukrainian state and no word of thanks for this money. Schäuble can phone with ease to Ulykayev to demand that Russia Ukraine keep afloat. That request would not be surprising. It is the peculiar logic of our Western partners.

http://slavyangrad.es/2014/12/13/ucrania...ancarrota/