Ex-PM: Ukraine’s default is a culmination of a plan


May 21, 2015


Translated by Kristina Rus

A deal on the blood: ex-Rada deputy forecasts a tragic finale of the conflict

The decision of the Verkhovna Rada not to pay debts means the default is close, thinks the ex-MP, the former head of the the State Commission of Financial Services [of Ukraine], Vasily Volga, reports “PolitNavigator”.

Vasily Volga

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“First of all, it is necessary to distinguish two types of defaults. Technical default and total default. In case of a technical default the country declares that it cannot pay its obligations, and asks the creditors to change the terms of contracts of those liabilities. Perfect technical default is a partial write off of debt, a deferral of payments on principal for something like ten years and a receipt of a new credit to pay interest on loans. A couple of years ago just such a default was experienced by Greece”, – he said.

Volga called the situation in Ukraine up to now – a “gift from heaven”, when “they forgive everything and even give more money”.

He explained what would a total default mean for the country. “This is a situation when lenders refuse to write off and restructure debts. In this case, the creditors have the right to demand the arrest of all foreign property and accounts of a bankrupt state. Also, the creditors, to satisfy their requirements, have the right to foreclose on the assets of the debtor state within the state. And, of course, you can forget about any loans from any international financial institutions. The national currency is instantly devalued. The value of state assets will plunge towards zero. Social programs are destroyed”, – said Volga.

In this case the one who owns the debt of a bankrupt state, becomes the owner of everything for nothing. “I think we should not forget about the information spread in the press a couple of months ago about the Rothschilds buying the sovereign debt of Ukraine”, – said the politician.

He noted that if the default of the country will be total, then “we will witness a grand buyout, which was prepared by war and the murder of tens of thousands of my fellow citizens“. “The culmination is near. We will see everything. All the cards will be revealed,” –  assured Volga.

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