Translated by Ollie Richardson & Angelina Siard
There is such a ridiculous and meaningless ranking, which is called Doing Business. Generally, most of the different ranking are absolutely stupid and are divorced from reality, but this one especially.
So, over the last few years Ukraine has risen significantly on this ranking – in 2013 she was 137th, and in 2015 already 83rd. Something which the government of Groisman didn’t fail to boast about.
Victory, isn’t it? But strangely in this meaningless and merciless ranking, the number one economy in the world China is in 84th place, just after Ukraine. And, most worryingly for non-brothers, Russia is placed 51st. Even there, Putin bought all.
That’s why I prefer to go with the more realistic indicators of the Ukrainian economy.
The banking system. The ten largest banks in Ukraine are 72.4% of the entire banking sector. Already in March 2014, the figure was 55.5%. Small banks are supplanted by the repression of the National Bank of Ukraine. In reality the monopolization of the banking system is going on (this situation in literature is called “cartel agreement”).
At this time the debt of refinancing of banks currently exceeds 81.3 billion hryvnia, of which 53.4% are the debts of banks who are facing liquidation (as Basilio the cat was singing – “goodbye to your money”).
Also, “Privat” bank of Kolomoisky needs more than twenty billion for refinancing, while he had to pay it back already at the end of 2014. But there is just silence, no one – neither activists, nor journalists or officials make any noise about it. They want to live. Because suddenly it can look like they are hidden separatists, and they could be eliminated by the next “patriots”.
The size of deposits in the banking system, if you add up the hryvna and dollar bills together, doesn’t exceed $16 billion. For comparison, in 2013, they accounted for over $42 billion (part stole, part consumed).
At this time the credit multiplier of the banking system ranges from $1.7-$2 (in most developed countries it is now 6 to 9). I.e., the resulting amount of money, which the banking system can supply to the real sector, covers at best only a third of the needs of the economy.
Oh yes, Putin’s enemy from National Bank of Ukraine and “Privat” bank strangle and suffocate Ukraine.
And, another interesting observation made by colleagues. It concerns not the banking system, but salaries.
It is no secret that Kiev’s people have always received more than the inhabitants of other regions. But if earlier the gap was approximately in the region of 45-50%, for the last three years it rose to 65-70%. Even before I used to call Kiev a parasite that sucks all the juice from the country, but now it became one and a half times stronger (and given the fact that the industrial South-East seceded, the burden on the regions has become even more).
Poroshenko’s regime is trying to maintain the quality of life of Kiev’s people, having spat on all the others (and at the expense of all others). Wallerstein calls this phenomenon the bribery of central residents.
The reason is simple – riots in the other regions are not as horrifying as an uprising in the capital. And even if the Kiev regime is not able to suppress regional riots (with such an approach, there will be new manifestations of “separatism” in the form of “Enough of feeding Kiev”), but in this way they at least do not directly threaten Porky.
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