Russia is ready to restructure debt for Ukraine, says Putin

By Vladimir V. Sytin
The Ukrainian Times

According to President Vladimir Putin, Russia is ready to restructure $3 billion of Ukraine’s debt. Under the restructuring, $3 billion Eurobonds due on December 25 must be paid in 2016-2018 in annual payments to the amount of $1 billion.

Previously, the so-called government of Ukraine had reached an agreement on restructuring 20% of its debt with a consortium of bond holders led by Franklin Templeton. After avoiding a default for a couple of years, Ukrainian neo-Nazi authorities think they are marvelous, like a drunk driver who did not get caught or kill anyone.

In return for a four-year extension on payments of the remaining debt, Ukraine agreed to a higher coupon (interest rate) of 7.75%, up from 7.25%.

As critics have pointed out many times, lending money that does not exist to the U.S.-backed puppet regime, 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. Finally, it is worth noting that the U.S. dollar has lost 95% to 98% of its purchasing power over the last 100 years.