Ukrainian authorities ask for more money, because understand that US has nowhere to hide

Author : Andriy Holovachov

Source :

The problem is that Groysman’s government simply spends these loans and rapidly increasing debt load without hope to raise the economy and pay off the loans
22:34, 4 October 2016

112 Agency

Once Groysman’s government received 1 billion dollars of assistance from the United States, they immediately asked for a second.

The reason for this unpretentious begging in the second half of the year is clear: it is a huge hole in Ukrainian budget.

As reported the Ministry of Finance on the results of in January-September period, income budget is not fulfilled by 30 billion UAH. Americans have almost completely closed this hole with their billion. However, in September the arrears amounted to more than 6 billion UAH (almost 232 mln USD). And there is every reason to believe that the year-end budget will have another 25-30 billion UAH deficit. At the same time the National Security Council has decided to increase funding for law enforcement agencies, and social minister Reva said that we will need additional 70 billion UAH  (2.7 billion USD) for subsidies in excess of the budget. The budget is falling apart, and authorities failed to stop thefts, in spite of all Prozorro systems.

Related: USA to allocate $1 billion to Ukraine until end of September

The US is in serious confusion. To allocate another billion to Ukraine for the United States poses no problem, because America only in a day it borrows an average 3-4 billion USD.

The problem is that Groysman’s government simply spends these loans and rapidly increasing debt load without hope to raise the economy and pay off the loans, because failure to comply with the revenue side of the budget means that the business is gradually shrinking or goes into the shadows.

In addition, the sharp increase in utility tariffs and the implementation of property taxes has led to the fact that people will pay to the state that tens of billions UAH, which will not get the business on its functioning and the payment of taxes. It's like communicating vessels: take the money from your population – and you will have to take an external loan. And it will always be this way, if the economy does not attract investments, if the economy is not growing. And there will be no investments until there will be a solid peace in Donbas. A solid peace the current government on the subjective and objective reasons can not provide. The circle has closed.

Related: Ukraine, USA sign agreement on military cooperation

US Finance Minister explicitly stated that for Ukraine it is unacceptable simply to increase its debt burden without reform. But the Americans can do? The IMF, which has always willingly responded to the US request to allocate a particular country the necessary funding, this time started abut against it. EU refused even to talk about this, as long as the dispute with Russia on a debt and gas is not settled. It is only interested in adoption of the Ukrainian energy legislation, adapted for the European standards, to be able to run their technology under their same commercial loans. In other words, make themselves a huge market for the next 20-30 years.

Therefore Groysman appealed to the last instance - to the United States. Americans have nowhere to hide; they are responsible for those who tamed. It is necessary to take care of them, and the Ukrainian authorities understand this. Understand that Americans have no persons to rely on in Ukraine, but particularly in this regard they do not worry. Because this is the case when the tail wags the dog.

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