Deputy Prime Minister Serhiy Tihipko. © AFP/ Sergei SupinskyWithout IMF Loan, Greek-Style Debt Crisis May Face Ukraine - Minister -- RIA Novosti
The Ukrainian economy may plunge to a "pre-default" level and experience problems similar to those facing Greece if Ukraine's cooperation with the International Monetary Fund (IMF) fails, Deputy Prime Minister Serhiy Tihipko has said.
"The IMF's exit [from Ukraine] will immediately lower the country's rates, and the cost of our foreign debt, which has significantly expanded over the past three years... will immediately increase," Tihipko, who is also serving as minister for social policies, said in an interview with Ukraine's Inter TV channel.
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My Comment: Just a small disclaimer .... on my father's side my family is Russian and they have had their roots in the Ukraine for almost a century (My mother's side comes from West of Moscow .... and they have been there forever). Also ..... talk about perfect timing .... I will be in the Ukraine/Russia in the middle of September for a few weeks (This will not impact this blog .... I have high speed internet and when there I will be having a lot of free time to comment and blog).
Ever since the Soviet Union broke up, Ukraine has been one of those textbook cases on how not to run an economy. Throw in Ukrainian - Russian animosity .... nationalism instead of rational government policies and conduct becomes the norm. Fortunately .... unlike Greece that owes tens of billions (if not more), Ukraine is not in that situation .... but like most of the former Soviet blocs they have their problems .... problems that will take a good generation or two to correct (I hope).
Then again .... who are we to judge them.