

By John Helmer, Moscow
@bears_with
President Vladimir Zelensky has enough fingers to count that $115 billion is worth almost three times more than $41.3 billion.
The first number is the International Monetary Fund’s (IMF) calculation of “external support over 2023–27 involving sizable official financing in the form of grants and concessional loans, as well as debt relief.” This includes “SDR [Special Drawing Rights] 11.608 billion (577.01 percent of quota, about US$15.6 billion).” No IMF member state has ever been allowed to take a six-times multiple of its borrowing quota at this money volume except for the Ukraine. Nor has any IMF member state ever been authorised by the IMF board of directors to stop new domestic bank lending and postpone all borrowing obligations (“current debt standstill”) for at least another three years from this Christmas.
The resulting money pile the IMF calls “the wartime liquidity surplus”.
Converting this into the Ukrainian banks’ profit line and diverting that into individual cash and assets, Kiev officials have told Reuters to report as the “Ukraine banks’ robust health.” “Across the banking sector,” the New York-based propaganda agency reports, “deposits are as abundant as they’ve ever been, and the country’s lenders have found ways to remain profitable.” This is being done, they explain, by borrowing more and more in government bonds at a 25% interest rate guaranteed by more IMF money flowing into the central bank; lending less and less to zero for customers; and ignoring the increasing pile-up of defaulted, non-performing, or fraud loans.
This is Zelensky’s pyramid, even Reuters and its Ukrainian banker sources imply, though the IMF staff cannot bring themselves to say so. “In the current context, Ukrainian bankers note, the choice makes sense. “’We will only survive if the government survives,’ [Privatbank chief executive Gerhard] Boesch sums up.”
The big money number dwarfs the Pentagon’s most recent estimate that “the Biden administration has committed more than $41.3 billion in security assistance to Ukraine since the beginning of Russia’s invasion in February 2022.” The new July 7 number includes deliveries of Patriot missiles, HIMARS rockets, cluster bombs, and “dual-purpose improved conventional munitions, or DPICM”. Using the banker’s term, the Pentagon announcement declared “the Ukrainian forces have effectively leveraged assistance…So we will continue to provide Ukraine with the urgent capabilities that it needs to meet the moment, as well as what it needs to keep itself secure for the long term from Russian aggression.”
When President Zelensky’s hands reach for his pockets, the calculation of “leverage” applies a liquidity risk discount for goods compared to cash; arms and ammunition cannot be diverted with the same profitability as cash. This is also because Pentagon delivery controls are more closely enforced on the ground than the IMF can follow the cashflow once it leaves the National Bank of Ukraine (NBU) and enters the oligarch banks now nominally nationalised.
It is thus clear that Zelensky’s pyramid is much more lucrative than the Ukrainian Defense Ministry and General Staff pyramid. This is why the war on the battlefields of the east is also a war of the two pyramids in Kiev.
To manage this war, the IMF uses its hands to pull the other leg. In the current IMF staff report it calls the war of the pyramids “progress in governance, anti-corruption, and rule of law reforms.”
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