Ukraine has been crippled by monetary, budgetary, industrial, banking and energy crises which will likely turn it into a third world country in the near future, living off handouts from friendly countries, an AFP report concludes Sunday.
Ukraine’s heavy industry has been completely crippled, with production dropping by 20 percent.
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And as foreign investors are staying away from this suffering market, the value of the hryvnia has dropped by 50 percent since January.
Ukraine’s GDP shrank by 6.8 percent last year, and expectations are the by the end of 2015 GDP will shrink by another 7.5 percent.
According to the IMF, Ukraine’s proportion of public debt to GDP is expected to rise to 94 percent this year, from 40 percent in 2013.
The experts are expecting that, in addition to its banking crisis, monetary crisis and economic crisis, this year the Ukraine will also experience an energy crisis.
A year ago, the IMF came up with a bailout plan for the Ukraine, worth $17.5 billion. Of that amount, $5 billion has been paid out. This is included in a bigger package of $40 billion which the international community has pledged to make sure the Ukrtaine does not collapse under Russian pressure.
The EU has offered Ukraine $2 billion right away, and bigger package of close to $12 billion later on.
No private lender would touch the Ukraine after Moody’s declared it is near 100 percent probability of defaulting on its debts,
Billionaire George Soros said he would invest one billion dollars in the Ukraine, but he wants others to go along.
Everyone, governments and private investors alike, is troubled by daily reports about system-wide corruption in the Ukraine, where the monopoly energy company Naftogaz and the state’s banks are owned by a tiny group of tycoons.
