Zero HedgeLast week we reported that as part of the latest “check kiting” bailout scheme, Greek pensioners (and now utility companies) are being raided by the Greek government so that it can repay its debts to the IMF, which in turn would go ahead and fund a part of the recently approved $17.5 billion bailout of Ukraine, which then would have the money to pay its debts to Russia… and the IMF. And, as we also noted, “The only question is how long will it take the current puppet government to syphon off enough funds into various illegal ventures and offshore accounts before the IMF has to step back in a la Greece with bailout #2.”
Turns out the answer is about a week, because as Reuters reported earlier today, CCC-rated Ukraine is preparing to issue more debt, debt with a Aa+/AAA rating because it will come with the explicit guarantee of the United States of America.
From Reuters:
The Republic of Ukraine has sent out a request for proposals (RFP) to banks for a new US government-guaranteed bond, according to three sources.
This is the second time the US government has thrown its financial backing behind a Ukrainian international bond issue.
In May 2014, the US guaranteed a US$1bn Ukrainian bond maturing in 2019 through the US Agency for International development.
That bond was given a credit rating in line with the US sovereign at Aaa by Moody’s, AA+ by Standard & Poor’s and AAA by Fitch. This is a far cry from Ukraine’s credit rating, which stands at Caa3, CCC and CC with the same three agencies.
The RFP comes just over a week after Ukraine agreed a new four-year US$17.5bn bailout facility with the International Monetary Fund.
As part of the IMF agreement several institutions – including the European Union, World Bank and US – have agreed to provide around US$7.5bn between them, according to analyst estimates, to the war torn country.
It is not clear whether the US-backed bond forms part of the US contribution.
One other place that also issued bonds with a US guarantee was Egypt. And everyone knows just how the US-inspired coup to put the Muslim Brotherhood in power turned out.
In other words, after raiding Greek pensions with the IMF’s blessing, the Kiev puppet government is now going after the “full faith and credit” of the US… backed by its taxpayers.
In yet other words, the latest Ukraine “bailout” is courtesy of you, dear US taxpaying reader.
http://www.zerohedge.com/news/2015-03-20/us-taxpayers-fund-ukraine-bailout-bond-guarantee