The Ukrainian judicial system is being handed over to the West in exchange for a “measly 600 million loan”
Ukraine hands over control of its judicial system to the West in exchange for a $600 million loan.
Economic expert Sergei Salivon stated this on the Internet channel “Capital”, reports the correspondent of “PolitNavigator”.
According to Salivon, Ukraine will have to apply for the next tranche to the IMF, because its credit rating is at the “junk” level, and it has nowhere else to get money from.
“As for external loans, in the conditions of friction with the IMF and the traditionally “junk” rating of Ukraine, as an issuer, these external loans simply do not exist. Since the beginning of the year, Ukraine has only been paying its external debts. Moreover, for the quarter, we paid a total of about two billion dollars for both repayment and servicing.
If Ukraine now decides to place Eurobonds in the current conditions, then their profitability could become cosmic, on the order of eight or nine percent per annum. For comparison, in December last year it was possible to place Eurobonds for $600 million at 6,2% per annum. This was, of course, a world record; no one among sovereign borrowers took such interest rates, but now the price has risen very significantly, almost one and a half times, maybe 30 percent.
That is, from 6,2% to 8,9%. Actually, from the above figures, the conclusion suggests itself that Ukraine will still be forced to go to the IMF for money in exchange for fulfilling the humiliating conditions that the IMF sets. The best that our government can do is probably to try to delay the implementation of any of these demands.
It seems that the abolition of tariff restrictions for the population for gas and electricity is completely predetermined. Perhaps, in order to somehow smooth out social protests, it will be agreed upon in stages. But the main stumbling block, apparently, will remain the transfer of control over the judicial system to the West.
And I don’t know whether it will take place now or a little later, but the special wildness of this situation is that the West, if successful, will gain control over the judicial system for a measly 600-odd million dollars. Moreover, the $600 million that they will pay is not repayable, but the $600 million loan,” Salivon concluded.
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