By Vladimir V. Sytin
The Ukrainian Times
To make up the balance of payments deficit for the period ending in 2018, Ukraine will need $40 billion worth of foreign loans.
Western financiers say its national debt has increased to 70.3% of GDP because of a capital outflow abroad. In addition, investors are highly averse to political uncertainty and will keep away from Ukraine until the situation improves.
According to forecasts by the World Bank, Ukraine’s GDP will fall by 12% this year.
As critics have pointed out many times, lending money that does not exist to the neo-Nazi regime in Kiev, which is already deeply in debt, is not a good business model. It does not really stimulate the Ukrainian economy and it does not really make people better off. Note that the U.S. dollar has lost 95% to 98% of its purchasing power over the last 100 years.
It is a waste of time to try to analyze the financial policy of the U.S.-backed puppet government of Ukraine. You are likely to find an ice cube in the Sahara as any trace of validity or sense in this policy. Many analysts think the IMF-shock therapy mafia is virtually destroying this country.
Today Ukrainian taxpayers are stuck with massive foreign loans that will take generations to pay off. Robbing Peter to pay Paul is morally wrong. Especially when Peter is a hard-working taxpayer.
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