Among other things, the leaked documents claim that the Ukrainian authorities were also asked to “restore some semblance of currency stability and functioning banking system” and “maintain unity among the various branches of government” in order to receive assistance from foreign allies.
Soros believes that it’s up to the EU to support Kiev with financial aid, stressing that “Europe must reach a new framework agreement that will allow the European Commission to allocate up to $1 billion annually to Ukraine.”
As for the current state of economy, the billionaire wrote that former Chilean finance minister, Andres Velasco, after visiting Ukraine on his request, returned with “a dire view of financial situation."
“The new Ukraine is literally on the verge of collapse” due to the national bank’s lack of hard currency reserves, Soros warned Poroshenko.
The correspondence shows that the billionaire has been in constant touch with the authorities in Kiev and consulting them.
Digging into the details of the documents, we find one intriguing snippet:
As you know, I asked Andrés Velasco, a prominent economist who was Chile’s very successful minister of finance from 2006-2010 to visit Kyiv where he met the Prime Minister; the President was in Warsaw at the time. Velasco came back with a dire view of the financial situation. The National Bank of Ukraine has practically no hard currency reserves. That means that the hryvnia has no anchor. If a panic occurred and the currency collapsed as it did in Russia, the National Bank could not stabilize the exchange rate even if only temporarily as Russia did by injecting $90 billion.
Your first priority must be to regain control over the financial markets—bank deposits and exchange rates.
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