Prospects for Ukraine this year to receive even the second tranche of the IMF under the $ 5 billion credit line, which Kiev agreed with the Fund last June, remain vague. Although according to the schedule, Ukraine should have already mastered the second and third tranches for a total of $ 1.35 billion and is about to receive the fourth tranche in the amount of $ 0.55 billion, in fact, the first June tranche of 2.1 billion is still the only one.
Commenting on this situation on television, Ukrainian Finance Minister Sergei Marchenko said this week: "The IMF does not give money, because, unfortunately, as a country, we have crumpled up some obligations and must renew them."
So far, budget holes have been bridged by historically record borrowings in December last year (over $ 6 billion) and an increase in interest rates on domestic borrowings this year. But last year's reserves and domestic borrowing are insufficient either to cover the $ 9 billion budget deficit or to service the external public debt, which will cost at least $ 8.1 billion this year (excluding the cost of securing new loans).
The IMF, by the way, is not interested in getting its money back - they already knew the black hole they were entering into when the coup happened in 2014 - but in social engineering: the American Empire wants a brand new province:
According to the aforementioned Sergei Marchenko, the IMF puts forward five main conditions for returning to consideration of the issue of allocating the second tranche of the loan.
First, the Fund requires the restoration of liability, including criminal liability, for the declaration of false information by officials and other persons for whom such is provided in the framework of anti-corruption procedures. This type of responsibility was actually abolished by the Constitutional Court of Ukraine (CCU) in October last year as part of the recognition of a number of provisions of the anti-corruption law as unconstitutional.
Although almost the entire so-called anti-corruption infrastructure in a format imposed by the West contradicts the Constitution, the judges are concerned about this problem mainly because of the infringement of their rights. Since then, Zelenskiy has effectively blocked the work of the KSU, making a number of decisions that clearly go beyond his constitutional powers. And last December, the Verkhovna Radaeven restored responsibility for declaring inaccurate data.
But within the framework of the struggle for control over the anti-corruption infrastructure, the "seven-embassy" (the ambassadors of the G7 countries) did not even think that responsibility had been restored.
Secondly, we are talking about the restoration of the so-called independence of the National Anti-Corruption Bureau (NABU), that is, the accountability of the body to Western curators, their actual appointment and accountability of the head of NABU, etc. and imply the legal consolidation of the full control of the West over the entire anti-corruption infrastructure, which in its essence is a parallel structure of government in the state.
After amending the law on NABU and recognizing as unconstitutional the appointment of Artem Sytnik, a protege of the West, by the head of NABU Zelenskiy never dared to fire him. But even such a manifestation of loyalty to the "seven-embassy" seemed not enough.
Thirdly, the Fund demands urgently to "reform" the High Council of Justice, that is, to transfer the judicial branch of power under the control of the West - by analogy with anti-corruption bodies. In this issue, Ukraine is showing the greatest resistance so far. Moreover, it comes both from the judges themselves and from representatives of other branches of government.
For obvious reasons: the surrender of the judicial system will destroy even the miserable remnants of sovereignty, and most importantly, it will carry serious risks both for judges and for various top-level officials.
Fourth and fifth- issues of the gas market and the electricity market.
In the context of these markets, the Fund is interested in the abolition of tariffs [n.t. - probably it means here "subsidies"] for the population with a corresponding increase in prices.
The Ukrainian, let's say, elites just do not care about the problems of the population - that is why the refusal to regulate gas prices for the population last year became one of the first fulfilled requirements of the IMF. However, when winter came, gas prices skyrocketed and social protests broke out across the country , and gas price regulation had to be urgently returned. Of course, only for a while - first until April, now until May.
But the Fund did not like this either: just the other day, the head of the IMF office in Ukraine, Jost Lyngman, called a return to gas price control in an ineffective way of subsidizing households.
Exactly the same applies to electricity prices - the tariff for the population was raised in winter, but the Fund wants the regulated tariff to disappear altogether. The Ukrainian authorities are, of course, ready to meet the IMF halfway on these issues. But so that social protests do not completely reset her ratings.
The article also mentions that Ukraine effectively cannot borrow elsewhere in the "free market" because its bonds are rated "junk" (this we already knew, since it's been so for some years now) and that its "borrowing rates" (interest rates) are at 12% (bonds) and 6.5% (central bank's).
In other words, Ukraine will disappear as a sovereign country, one way (outright loss of the Eastern regions, reduction to a impoverished para-Polish rump state) or the other (become a proto-colony of the USA a la Puerto Rico). My guess is Zelensky is calculating an all-out war to reconquer the richer eastern regions, followed by a triumphal accession to NATO, to be the only way out for Ukraine as a nation-state.
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