https://sputnikglobe.com/20240624/desperate-ukraine-needs-massive-debt-bailout--report-1119083622.html

Desperate Ukraine Needs Massive Debt Bailout – Report

Desperate Ukraine Needs Massive Debt Bailout – Report

Sputnik International

Private debt forgiveness is the only response to the country’s bleak economic situation, according to the broadsheet.

2024-06-24T03:02+0000

2024-06-24T03:02+0000

2024-06-24T04:32+0000

economy

volodymyr zelensky

ukraine

financial times

g7

the new york times

russia

russia-nato showdown

foreign debt

sovereign debt

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With Kiev’s gloomy financial prospects showing no sign of improving, one British newspaper is insisting that Western bondholders must forgive a substantial portion of the country’s arrears.“Doing so is a tricky juggling act,” the paper’s editorial board observed, claiming substantial Western investment would be needed as the country rebuilds.At stake in current negotiations is $20 billion owed to private bondholders, just a small portion of the government’s $152 billion in overall outstanding debt.Ukraine’s debt payments have been paused since the outbreak of the Russo-Ukraine conflict but are scheduled to resume in August. A recent G7-backed deal to reduce the amount owed by 60% was rejected by investors last week, who counteroffered a 20% write-down.Washington’s sabotage of efforts to end the war was finally acknowledged by The New York Times and other mainstream outlets earlier this month.The editorial proposes three options for Ukraine – a default, another pause of payments, and continued insistence on a more significant debt reduction. Another pause would see the interest on the debt continue to balloon, while a default would further damage the country’s reputation and distract from the country’s efforts on the battlefield as Moscow appears poised to deliver a knockout blow.Kiev was widely acknowledged as a perilous environment for foreign investors for decades before the current conflagration, with British newspaper The Guardian calling Ukraine “the most corrupt nation in Europe.” Corruption has remained endemic among government officials since the country’s independence from the Soviet Union in the early 1990s. Last year, defense minister Oleksii Reznikov was fired after millions of dollars of fraud was uncovered in procurement deals for the country's armed forces.Ukraine has meanwhile relied on aid from Western countries merely to continue funding basic government services, a fact that has created controversy as increasing numbers of Americans tell pollsters they believe the US is spending too much money propping up the Kiev regime.Controversial investment firms like BlackRock and JPMorganChase are set to receive billions of dollars in profit from reconstruction efforts, with Ukraine’s indebtedness set to perpetuate Western influence in the country for years to come.

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