Well that didnt take long.. the nationalists who freed the country from Yanukovychs apparent corrupt government in favor of a well-chosen US leadership, are now turning on the replacements: *UKRAINE NATIONALIST PRAVYI SEKTOR PROTESTS AT PARLIAMENT: TV5 *UKRAINIAN PROTESTERS DEMAND INTERIOR MINISTERS RESIGNATION *UKRAINE LAWMAKERS EVACUATED FROM PARLIAMENT BUILDING: TV5 Of course, this is a day after the partys leader was allegedly killed by Police, and following lawmakers demands that citizens return any illegally held guns. Along with an immediate rise in the price of oil by 40%.It seems revolution is addictive... Of course, bear in mind that the lawmakers are still discussing whether to vote for and approve the IMF aid package and this suggests things are on hold for a while... Hundreds of the Right Sector members flood the square in front of Verkhovna Rada in the Ukrainian capital on Thursday night. Wearing masks and brandishing bats, they were shouting Avakov, get out! They were quite eager to get in and help him leave as one can see in the photo from the live feed. Meanwhile Gazprom must really be demanding payment on overdue Ukraine invoices which is the only way to explain the unprecedented speed with which the IMF has managed to cobble together a makeshift bailout package of up to $27 billion - the bulk of which will naturally go to Russia - which has just made Ukraine its latest vassal state. As Bloomberg reports, Kiev reached a staff-level agreement with the Washington-based lender for a two-year loan of $14 billion to $18 billion. The IMF’s board must still sign off on the package, Ukraine’s third since 2008, and the government needs to complete “prior actions” to receive the first installment. Approval is “expected in April, following the authorities’ adoption of a strong and comprehensive package of prior actions aiming to stabilize the economy and create conditions for sustained growth,” IMF mission chief Nikolay Gueorguiev said in the statement. Just like Troika disbursement for Greek aid may come any minute now... as long as Greece allows to extend the definition of fresh milk so European milk exporters can put Greek milk producers out of business. Yup: we know how the IMF works. That, and of course the requirement to hike gas prices by 40% or so. The IMF agreement will clear the way for 1.6 billion euros ($2.2 billion) in emergency aid from the European Union, European Commission President Jose Barroso said March 5. The EU offered an 11 billion-euro aid package. Ukraine is also waiting for $1 billion in loan guarantees and $150 million in direct assistance from the U.S. “This represents a powerful sign of support from the international community for the Ukrainian government, as we help them stabilize and grow their economy, and move their democracy forward,” the White House said in an e-mailed statement. Because there is nothing quite like insolvent Europe bailing out insolvent Ukraine. As part of the IMF agreement, the Ukrainian government agreed to cut the budget deficit to 2.5 percent of gross domestic product by 2016 and to raise retail energy tariffs toward their full cost, according to the Washington-based lender. The central bank will shift toward a flexible exchange rate and the country will tackle bad debts in the banking industry, it said. Welcome to IMF vassal state status. Enjoy your hyperinflation dear Ukrainians - at least you will have your freedom... just like Greeks have the Euro, if no economy to speak of. Then again, with or without the IMF, Ukraine is likely a lost cause - earlier today, acting PM announced that the country is on the verge of bankruptcy, a statement which has no hyperbole in it whatsoever. To wit: Ukrainian economy to shrink 3% this year, inflation to be 12%-14%, Prime Minister Arseniy Yatsenyuk told parliament in Kiev. He added the GDP forecast based on passage of “unpopular reforms. If those laws aren’t adopted, we see default and 10% economic decline. This package of laws is very unpopular, very difficult, very tough reforms, which we should have done in the last 20 years. Flashback to Hank Paulson waving a blank 3 page term sheet before Congress demanding unlimited power or else the global economy gets it. Finally, if everything goes according to plan, Ukraine has a sterling role model to look forward to. Quoting German FinMin Wolfi Schauble from yesterday - If ever we were to reach a situation in which we had to stabilize Ukraine, we would have many experiences from the Greek case to draw on. In other words, Greece is now an example of successful economic reforms. Goodbye Ukraine, it was nice knowing you.
Posted on: Fri, 28 Mar 2014 00:20:28 +0000
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