Wednesday, May 20, 2015

#Kiev's Supreme Council law lowered the ratings of #Ukraine to the #Trash

#Kiev's Supreme Council law lowered the ratings of #Ukraine to the #Trash

Mykola Azarov defaulted Ukraine: Casual workers Got GameMany questions about adopted the so-called Supreme Council law allowing so-called Government of Ukraine to selectively avoid paying its obligations.

The announcement of this I first of all created a sense of sorrow and regret. This will result in a further deterioration of the lives of ordinary people and the deepening crisis in the economy.

While it is not the default, that is not a specific failure to pay its obligations, and that an official warning Ukraine about his upcoming bankruptcy. There is no need to take such a law, of course, it was not. Terms of payment has not yet come, little money, but they are - for the last IMF loan not yet fully dissipated. But this nonsense, according to its authors - should be a means of blackmail creditors. "Agree to our terms and conditions - or will not pay." This is the meaning (if one can speak of the meaning) of this stupidity. Why - it is nonsense. Because this law, creditors do not scare. All agreements are decorated in the English jurisdiction. Meet its obligations Ukraine will all state assets, which can seize bailiffs, including, for example, accounts of embassies, all state-owned enterprises, and the recovery in this case is undeniable.

Ukrainian Eurobonds up to a total amount of approximately 15.3 billion. Dollars. This was our most used tool to attract foreign capital for the development of the national economy. And with investors who have invested their money in Ukraine, it is necessary to work very carefully. The tone of threats and blackmail led to the fact that only in the last few months of securities Ukreximbank, Ukrzaliznytsia, Kiev lost in price from 15 to just 55% of the value of their nominal value. Securities are now traded Ukraine from 47 to 42% of their nominal value, ie, investors in our bonds have lost much, and now the law.

But it's more than stupid - it is a betrayal of national interests of Ukraine, the loss of confidence in the country, evidence of complete bankruptcy and insolvency state. Poroshenko, Groisman, Yatsenyuk and all who voted for the bill, go down in history as the people that led to the bankruptcy of Ukraine, as people who have the mind just enough for a primitive blackmail. First brought down the hryvnia, then the economy lost export revenues, squandered loans and foreign exchange reserves, in a word, brought Ukraine closer to collapse, and now began to engage in a public blackmail.

This will result in the complete closure of the financial markets for Ukraine, and then the complete closure of the financial market for private companies and businesses, and this will further exacerbate the collapse of the economy.

I never thought that such a disaster will overtake Ukraine. In 2003, in the most difficult circumstances, I settled with the Paris Club creditors, and Ukraine had the opportunity to enter the financial markets, the possibility of obtaining the financial capital for its development. Year after year, we have tried to argue the country's reputation as a reliable partner and the borrower, and almost came close to investment grade. All it brought down Tymoshenko's government in 2008-2009. Then again, the years of difficult and hard work, and this is now a long time in Kiev mode lowered the ratings of the country to the trash.

Was it possible to avoid this? Of course you can. I can not imagine a situation in which, if you are really doing the country's economy and international experts see the results of your efforts, and you would not be able to negotiate with creditors. Absurd.

I would also like to remind the unfortunate temporary worker, at the end of last year, it accepted the "Law on State Budget for 2015". It provided all the debt payments, including Eurobonds. The budget is prepared on careful calculations of the macroeconomic situation and is usually done on the most pessimistic scenario. What, then, is the professionalism of the so-called government, if the reality is even worse than the most pessimistic forecasts?

In short, Got Game.



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