Citizens around the world call on the IMF to cancel Ukraine’s unjust debt

The CADTM publishes this petition which emanates from Ukrainian citizens and which rightly asks for the cancellation of the Ukrainian debt. Rightly, the initiators of this petition affirm that the

“Chaotic borrowing and anti-social debt conditionality were the result of outright oligarchization: Unwilling to fight the wealthy, state leaders went deeper into debt. The loans were issued under conditions of social spending cuts, and their repayment was forced to economize on basic needs and apply austerity to fundamental sectors of the economy.

It is for these and other reasons that the debt claimed from Ukraine is illegitimate. This is reason enough to justify its cancellation.

The war of invasion that Ukraine is undergoing is another compelling reason to justify debt cancellation. The Ukrainian people must be supported in their struggle against aggression.

The CADTM specifies that it has reservations concerning the partially positive vision of the European Union given by the authors of this petition. The CADTM considers that the European authorities have constantly pushed for the implementation of neoliberal policies. The European treaties are designed to favor the interests of big capital and big business so that they can best exploit workers by pitting the working classes against each other. The EU promotes a huge wage disparity between Romanian and Bulgarian workers on the one hand and workers from the western part of Europe on the other. The Ukrainian people would do well to reflect on the serious risks of their country joining the European Union as it is conceived.

Despite our reservations on the text on the question of the EU, the CADTM supports this petition and calls for its signature.


On February 24, Russia launched a full-scale war against Ukraine.

The independence of Ukraine is threatened by a large-scale Russian invasion on the territory of our country.

The state can no longer afford to repay its debt because the Ukrainian economy is destabilized following the military campaign, increased military spending and the need to deal with the consequences of the war.

Currently, Ukrainians are at the epicenter of the war, unable to work and earn a living, we are losing our homes, our economy and our property. Moreover, the military occupation campaign of the Russian Federation destroys strategic and critical infrastructure sites and enterprises, transportation arteries and the economic potential of our country while all possible resources are mobilized to support the campaign. of military defence.

Currently abroad from Ukraine the debt stands at 125 billion dollars. Debt service expenditures for 2022 are expected to be around $6.2 billion. This represents approximately 12% of all state budget expenditure

the IMF
IMF
International Monetary Fund

Together with the World Bank, the IMF was founded on the day the Bretton Woods agreements were signed. Its first mission was to support the new standard exchange rate system.

When the Bretton Woods system of fixed rates ended in 1971, the main function of the IMF became that of being both policeman and fireman of world capital: it acts as policeman when it applies its structural adjustment policies and as a firefighter when he intervenes. to help governments at risk of not repaying their debt.

As with the World Bank, a weighted voting system works: according to the amount paid as contribution by each member state. 85% of the votes are needed to modify the IMF Charter (meaning that the USA with 17.68% of the votes has a de facto right of veto on any change).

The institution is dominated by five countries: the United States (16.74%), Japan (6.23%), Germany (5.81%), France (4.29%) and the Kingdom United (4.29%) .
The other 183 member countries are divided into country-led groups. The most important (6.57% of the vote) is led by Belgium. The smallest group of countries (1.55% of the vote) is led by Gabon and includes African countries.

http://imf.org component of the above sum is $2.7 billion. This is equivalent to 16.5 million average pensions in Ukraine.

In the name of all Ukrainians, we demand (1) the cancellation of the debt – which is currently choking our state – and (2) that we receive multifaceted financial aid.

We demand that Ukraine be freed from the yoke of debt!


Raison

Why is debt unfair?

Ukraine remains one of the poorest countries in Europe, which is now also forced to defend itself against aggression and the military offensive of the Russian army – the second largest army in the world. Budgetary expenditures on weapons and the medical needs of the wounded have increased exponentially. In the aftermath of the war, Ukraine will also need money to rebuild its homes and infrastructure.

Under these conditions, servicing the debt is only possible if Ukraine denies its citizens the satisfaction of their most urgent needs.

Chaotic borrowing and anti-social debt conditionality were the result of outright oligarchization: unwilling to fight the rich, state leaders continued to take on more debt. Loans were issued under conditions of cuts in social spending, and their repayment forced to save on basic needs and apply austerity to fundamental sectors of the economy.

Due to lack of funds, Ukrainian hospitals are ill-equipped, jobs for medical staff of all ranks are being cut, and those with remaining jobs are underpaid, as are teachers and other public sector workers. For example, many in some mining industries are not paid at all, salaries are lagging.

The country’s largest labor organizations representing some 5,000,000 workers have also joined the call for debt cancellation.

Who would benefit from the cancellation of the debt burden?

Such a decision would help the Ukrainian people because, due to the military invasion, they need funds to protect their civilians, provide housing for the displaced and medicine for the injured.

Such a decision would be beneficial for our EU neighbors as it would reinvigorate economic activity in Ukraine and thus reduce the risk of an ongoing war in Europe and help rebuild the Ukrainian economy and the infrastructure destroyed by the bombs. The well-being of Ukraine is of crucial importance for the stability of all of Europe, of the whole world.

What would be the consequences of canceling the debt burden?

  • This would facilitate the reconstruction of strategic businesses and infrastructure destroyed as a result of military action
  • It would stop austerity in the social field and allow, over time, to rebuild their functionality and quality, allow their workers to live decently
  • This would establish justice in relations with the EU and Ukraine, would become another significant act of support.

We express our gratitude to the Polish party Razem which has already made a suggestion that Ukraine’s debts are taken over by the European Union central bank
central bank
The institution which, in a given state, is responsible for issuing banknotes and controlling the volume of currency and credit. In France, it is the Banque de France which assumes this role under the aegis of the European Central Bank (see ECB) while in the United Kingdom it is the Bank of England.

ECB: http://www.bankofengland.co.uk/Pages/home.aspx and other creditors.


Connections:

  1. https://www.imf.org/external/np/fin/tad/extforth.aspx?memberkey1=993&date1key=2021-12-31&category=forth&year=2018&trxtype=repchg&overforth=f&schedule=exp&extend=y
  2. https://bank.gov.ua/files/ES/ZB_y_en.pdf
  3. https://www.ceicdata.com/en/indicator/ukraine/external-debt
  4. https://tradingeconomics.com/ukraine/external-debt
  5. https://partiarazem.pl/2022/02/uwolnijmy-ukraine-od-dlugow/
  6. https://partiarazem.pl/2022/02/postanovlennya-natsionalnoyi-rady-partiyi-livi-razom-shchodo-napadu-rosiyskoyi-federatsiyi-na-ukrayinu/


Translations:

  1. Ukrainian https://www.openpetition.eu/petition/online/ludi-v-usomu-sviti-prosat-mvf-skasuvati-zovnisnij-borg-ukraini
  2. German https://www.openpetition.eu/petition/online/menschen-auf-der-ganzen-welt-bitten-den-iwf-der-ukraine-die-auslandsschulden-zu-erlassen
  3. Dutch https://www.openpetition.eu/petition/online/mensen-over-de-hele-wereld-vragen-het-imf-om-kwijtschelding-buitenlandse-schuld-oekraine
  4. Japanese https://teletype.in/@alefnull/cancel-ukraine-debt-japanese
  5. Basque https://teletype.in/@alefnull/cancel-ukraine-debt-basque

Thank you for your support,

VIktoriia Pihul of Kyiv,


For more on Ukraine’s debt:

Helen D. Jessen