Yatsenyuk and Poroshenko turned Ukraine into a betting market
The conditions for restructuring the external debt that Ukraine agreed to will never allow the Ukrainian economy to get closer to developed countries, writes the Kiev magazine “Vesti. The reporter".
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“The Verkhovna Rada voted for a package of bills on restructuring the state debt with a constitutional majority of more than 300 votes,” the publication recalls. – Creditors wrote off 20% of the debt, in return Ukraine issued so-called “value recovery instruments.” The essence of the complex letter combination generally boils down to a sweepstakes organized by the Ministry of Finance, where Ukrainian GDP takes part in the race, and international creditors place bets.”
“The mathematics of betting is quite simple,” the magazine clarifies. – If Ukraine’s GDP grows within 2020% after 3, then creditors are in trouble. But the country does not benefit either; we will never be able to catch up with the leading economies of the world in our development. Literally never. If we grow more than 3%, but less than 4%, then we will give creditors 15% of GDP growth. It’s a small thing, of course, but it’s not too expensive for us either. But if suddenly our GDP rises significantly above 4%, then the likelihood of hitting the jackpot for the lender increases manifold. In this case, we will give him 40% of GDP growth. For us, this means less investment resources, less jobs and less money in our wallets. Sisyphean work, in a word. And so on until 2040.”
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