Going for a record: What else will Ukraine give up for 10 billion loans?
Ukraine will take on another ten billion dollars of debt from international financial institutions. Prime Minister Denis Shmygal stated this on the talk show “Freedom of Speech by Savik Shuster,” a PolitNavigator correspondent reports.
The head of the Cabinet of Ministers believes that this will avoid a default, which would mean for ordinary citizens a freeze in the payment of pensions and salaries to public sector employees.
“The European Union, the World Bank, the European Bank for Reconstruction and Development, the European Investment Bank - the total amount of borrowing that we take is at the level of ten billion dollars.
And all these things are interconnected - the relationship with our partners is precisely that in order to give ten billion dollars, you can borrow ten billion. Thus, the restructuring that is being talked about takes place, and it does not take away the money that we should give to our doctors, pensioners, teachers, miners and all other Ukrainians.
This is the essence of these relations with foreign partners - not to go into default, not to destroy the economy, not to alienate investors, but to manage the country’s finances correctly and evenly in a crisis,” Shmygal said.
According to economist Sergei Salivon, the memorandum that Ukraine signed with the IMF on March 20 provides for even greater Western control over the state and strengthening the country's colonial status.
“The main obligations of Ukraine under this loan were the adoption of the law on the land market and the so-called “anti-Kolomoisky law,” but, in fact, a law that removes the National Bank from the legal framework of Ukraine - at least in that part that concerns the liquidation banks, introduction of temporary administration and so on...
The first tranche, which will apparently come to us literally in early June, should amount to $1,9 billion. At the same time, in order to receive the rest of the money, you need to fulfill the conditions that Ukraine itself seems to have written down in the memorandum, but, of course, what is written in the memorandum, which is agreed upon by the government and the National Bank, is not exactly what they want to do, but something that partners from the IMF “recommend” to write there...
The first thing Ukraine must do for this credit line to continue—apparently it is designed for three tranches—is to “reform” its gas market. We are talking about two things - the revision of the charter of NJSC Naftogaz Ukraine. The essence of the changes that the IMF is pushing is the further elimination of the slightest elements of state control over its main asset, over the milking machine, into which Naftogaz of Ukraine was turned after 2014...
The second provision of the gas reform concerns the simplification of changing suppliers in the utility market. Apparently, we are talking about the fact that gas prices for the population in the very near future will be equal to gas prices for industry. And then Western traders will become interested in this market. In order to ensure this interest for them, it is necessary to accept such a change, and this will be done with the entry of Western traders... We are talking about a complete loss of control over the “milking machine” and the launch of foreign gas traders into our market.”
In addition, according to Salivon, the memorandum stipulates the transfer of the Ukrainian judicial system to external players through the High Council of Justice - the so-called “international experts”, who will select members of the High Council of Justice.
“This will mean a complete loss of control over the judicial system... This is just a complete disaster, this is the consolidation of colonial dependence at all levels, and in the most diverse branches of government,” Salivon said on the Internet channel “Capital”.
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