George Soros Believes the New Ukraine Deserves a Bailout
There is a new European nation being developed, a gorgeous country of friendly people who wish nothing more than to be free and prosperous. That country is Ukraine, and billionaire investor George Soros believes that it is a nation worthy of strong global support in the form of solidarity, aid and debt forgiveness.
To understand why Soros feels that Ukraine deserves so much help, it is important to put recent history into perspective. In a 2015 opinion piece penned along with philosopher Bernard-Henri Levy, George Soros argued that Ukraine’s ongoing revolution and armed conflict against Russia is an admirable experiment in democracy.
Indeed, modern news coverage has allowed the world to see that what is happening in Ukraine is a participatory struggle to become a nation that is truly democratic and unwilling to live under a corrupt regime. The way Ukraine has managed the forceful Russian land grab of the Crimean peninsula as well as the violent separatist movement is commendable.
A major focus of Soros’ philanthropic efforts have been focused on Eastern Europe, and this is a nod to his Hungarian heritage. Soros strongly believes that Eastern Europe is a land of promise; a region that aims to adopt all the good democratic practices of the European Union.
Soros feels that Ukraine and other former Soviet republics are threatened by their own pasts; this is something that can be observed in the ongoing conflict in the Ukraine, where a Cold War specter has set in.
George Soros – Project Syndicate
Prior to the Crimean crisis, many nations agreed to provide economic aid to the Ukraine by purchasing huge chunks of sovereign debt. This investment, though risky, was attractive in the sense that the good people of the Ukraine are smart and hard-working. Foreign creditors as well as private investors were enticed by the prospect of Ukraine as an emerging market filled with peace-loving people who strive to live democratically in search of freedom and prosperity.
Unfortunately, the conflict with Russia put a hamper on the economic dreams of the Ukrainian people. When Soros argued for a bailout of Ukraine in early 2015, investors listened. He made a sound argument in favor of debt forgiveness, citing the conflict’s impact to the industrial sector and the scores of businesses that have closed across the country.
In August of 2015, the BBC reported that investors holding Ukrainian sovereign debt agreed to a 20 percent write off and to established an extended timeline for repayment. As Soros explained, the people of the Ukraine are bound to prevail, but they need time and help from the global community.
Soros did not make guarantees to investors; instead, he highlighted the noble values that the Ukrainian people are fighting for, and he elucidated on why those values will be ultimately convenient for Europe and for the world.
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