Michael Hudson: the position of Kiev on its debt of Russia " unheard of "

Kiev was "unheard of" positions on its debt of Russia, demanding to restructure as a private, and at the same time, it is the state, said the Expert on the economy of the USA and journalist Michael Hudson analyst, former Advisor to the U.S. state Department James Carden.

in his article in the journal Cardin talks about the consequences of the recent private creditors write off 20% of the debt Ukraine and cites the opinion of experts on this matter.

for example, Professor Hudson believes That the international monetary Fund (IMF) is obliged to convince the Kiev authorities That the funds of the national welfare Fund of Russia has invested in Ukraine, should be considered as a debt.

at the end of June, the IMF, according to media reports, previously supported Russia's position on the status of its bonds, making them public, not private debt of Ukraine. However, From the perspective of the Hudson, the Fund is "not insist" on it and refuses to influence Kiev in this regard. The Minister of economy of Ukraine Natalie Jaresko, speaking on Ukrainian television said That Ukraine will not be able to offer Russia anything but debt restructuring.

"If the IMF will allow Ukraine to cancel its obligations under the Russian bonds, the consequences can be drastic," says the Expert on the economy of the United States. In such a scenario it becomes obvious That the IMF does not consider it necessary to apply international legal norms with respect to Russia, adds Hudson.

With the Professor, If in the early winter of Ukraine With the consent of the IMF deliberately defaults on its debt of Russia, it will mean That access to international laws closed for any government, which Washington considers to be his rival.

Cardin makes the following conclusions from the statements of Hudson: write 20% of the debt Ukraine - a very modest victory for the country's economy, while at the same time the situation With the debt of Kiev, Moscow and its perception of the international monetary Fund may entail more serious consequences.

The analyst also stressed That the Russian Federation, Clearly, agreed on the restructuring of the Ukrainian debt, If its own economy does not become the target of Western sanctions. From his point of view, after Poroshenko has demonstrated readiness to apply tranche of the IMF for so military operations against its own Inhabitants, the capital of Russia was reluctant to provide assistance to Kiev.

"Worse still, the IMF loan and the pros from debt restructuring (whatever they are), some have the opportunity to contrast how the oligarchic nature of the economy, widespread government graft", says Cardin.


sections: Politics