By Vladimir V. Sytin
The Ukrainian Times
The so-called government of Ukraine and the Japanese international cooperation agency JICA have signed a credit agreement worth 108.193 billion yen ($870 million) on June 15. The funds will be used to modernize the Bortnichi aeration station on the outskirts of Kiev by means of Japanese techniques and equipment.
The above agreement is a part of financial assistance in the total amount of $1.5 billion, which Japan renders to Ukraine.
According to observers, today Japan limps along after 25 years of stimulation with the economy that is not a yen larger than it was two decades ago. Its government debt/GDP ratio is estimated at a crushing 235%. Government deficits are still running at 8% of GDP.
Japan’s debts have grown so large that 43% of tax receipts are required just to service past debts, to say nothing of the amounts needed for current and future deficits. Try living on 57% of what you earn (the rest goes to pay your creditors), while still spending more than your income. Experts think Japan’s public finances are doomed.
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