Under pressure from society, the text of the memorandum with the IMF under the Stand-by program was released. The entire list of requirements is simply shocking. It is not surprising that the government, until recently, tried to hide the essence of the agreement, because in fact this document is nothing more than an outright crime and the surrender of the country’s interests.
The memorandum should be exclusively about the financial and economic component of cooperation with the IMF. But dozens of points directly relate to the domestic policy of Ukraine, personnel decisions, provide for the establishment of control by foreign states over Ukrainian law enforcement agencies. All this was signed even without discussion in parliament.
Here are just a few points of obligations:
“Optimization” of educational institutions
Put it simply, schools are being closed in the regions, limiting the constitutional right of children to education and the chances of entering a university. According to the Union of Education and Science Workers, further optimization will lead to the closure of 3427 educational institutions and the dismissal of about 20,000 teachers. In addition, Ukraine promised the IMF to change the payroll system for teachers and university professors, linking it to work performance.
Foreign management of Ukrainian banks
Ukraine agreed that the International Finance Corporation of the World Bank Group approve the loan of Ukrgasbank, convertible into equity. What is a general convertible loan? It means that the company, in this case Ukrgasbank, must return the borrowed money in its own shares.
Here you need to pay attention to 2 things. The first is Ukrgasbank, about the fourth largest bank in the country. Secondly, a 94.94% stake in Ukrgasbank now belongs to the Ukrainian state. Thus, in return for the a new tranche, a foreign lender claims to have a stake in a large Ukrainian bank, because this will allow influencing the financial system of Ukraine. And this is not to mention the number of foreign “experts” in the supervisory boards of other Ukrainian banks.
“Wiretap” from National Anti-Corruption Bureau
The current head of National Anti-Corruption Bureau of Ukraine, Artem Sytnik, who, despite corruption scandals and his inefficiency, enjoys extreme affection from the European partners of Ukraine. It was they who in 2014 insisted on the adoption of the law, which greatly complicated the dismissal of Sytnik from his post.
Obviously, it is important for foreign creditors to influence the main anti-corruption body of Ukraine, and the new memorandum of cooperation did not do without IMF. We are talking about the obligations of the Ukrainian authorities to amend the law (Law No. 2019/187), which will significantly expand the capabilities of the bureau. In particular, they will allow: “… to independently take information from communication channels in order to effectively intercept communications for fixed lines.” The IMF is preparing us for such an “independent” and “free” country.
Another anti-corruption body
In the event of the dismissal of Sytnik, the memorandum provides for the creation of another anti-corruption institution, which, obviously, will also be controlled by the IMF. The document says: “… we will adopt a law on the establishment of a financial investigation body, which will enter into force on January 1, 2021. This body will take responsibility for the investigation of economic, financial and tax frauds and crimes that the national police, Security Service of Ukraine and tax police”.
Knocking out of debt and the increase of fines
Despite the difficult situation with tariffs, the government allows to bleed money out of their own citizens. In the memorandum, this sounds like “collection of payments for heat supply by increasing fines and simplified legislation.”
Restrictions of Ukrainian justice
The requirements of the IMF state that Ukraine should prohibit the cancellation of decisions of the National Bank of Ukraine, the Deposit Guarantee Fund for Individuals, the government and the Ministry of Finance on the restructuring of debts of Ukrainian banks through the courts. And this is the direct intervention of foreign states in the Ukrainian justice, restriction and destruction of the Ukrainian banking system.
IMF lending is proof of the inability of the Ukrainian government to build an effective economic model that would work for the people. Absolutely every IMF loan is a blow to Ukraine’s independence: financial and political. As we can see, the only purpose of these actions is to destroy the political subjectivity of our state and make it a colony with cheap resources and labor.