Skip to comments.Americans buy 20 percent of Ukraine's public debt
Posted on 11/12/2013 12:47:15 AM PST by TexGrill
U.S. investment fund Franklin Templeton Investments acquired bonds of the Ukrainian government worth $ 5billion, accounting for 20 percent of the Ukrainian foreign debt.
First vice-premier of Ukraine, Sergei Arbuzov, and Finance Minister Yury Kolobov visited the headquarters of the fund in California to discuss the details of future cooperation.
Investment company Franklin Templeton (FT) was established in 1947. The company manages assets worth about 815 billion dollars. The fund owns bonds of Ireland that were acquired during the time of the financial crisis. After Ireland received financial support from the EU and the IMF, Franklin Templeton gained considerable profit.
However, experts call the deal with Ukraine a more risky endeavor. The financial position of Ukraine is to significantly worsen on world markets. Morgan Stanley's analyst Paolo Bathory said that the Ukrainians may face severe shortages of cash and assets.
(Excerpt) Read more at english.pravda.ru ...
If Templeton Investments did carry this out....it’s awful foolish. If this were some Asian country with a downward trend....I’d have faith in buying under-valued assets and finding recovery in five years to be a big-deal.
In this case....it’s a country loaded with corruption and screwed up priorities. Unless the Ukraine is jumping into fracking and there’s tons of oil there....it doesn’t make any sense.
I agree. This is completely stupid. There is nothing more entitled than thebUmrainian mentality.
This is interesting. Ukraine has large resources of iron and coal. Their agricultural segment shipped 32 million tons of grain in export this year. Corruption is an issue as is the ongoing wrangling between Gazprom and Naftogas. This bet could payoff big given some economic efficiencies
The entire Ukranian national debt is less than Detroit’s.
...and probably a safer bet.
The Ukraine has potential..but the corruption is much worse...but it was called the bread basket of Russia ...and can be again..but getting ownership of the lands from the corrupt is the big challange...the people seem hard working though...good luck