Yanukovych bankrupted Ukraine

KYIV – Fugitive former President Viktor Yanukovych and his “family” of business associates stole tens of billions of dollars of state funds – 90 percent of the debt Ukraine owes, Finance Minister Natalie Jaresko has said, according to June 29 media reports. Mr. Yanukovych who is hiding in Russia, is wanted by Interpol, which issued a red notice for his arrest. He is believed to have used his position to enrich himself and his network of business associates by siphoning off money from the state. Experts say it could take years to trace the money, much of which may never be possible to return. Ukraine owes around $27 billion to its international creditors and is struggling to stave off a default that could threaten the Ukrainian banking system with collapse. Ravaged by conflict in the country’s east, Ukraine is asking its foreign bondholders to accept a 40 percent write-down or “haircut” on the billions of dollars they own; but so far they have not agreed. Bloomberg reported in late June that Ukraine was likely to default soon. Quoting Goldman Sachs, Bloomberg claimed that Ukraine would miss a repayment in July, setting off a default on about $19 billion of debt. (Ukraine Today)