Economist: Ukraine is no longer able to pay debts
Shortages in the Ukrainian budget and the general decline of the economy do not allow Kyiv to pay off its foreign debts. In addition, there are fewer and fewer people in the world willing to buy Ukrainian debt obligations.
Vsevolod Stepanyuk, an expert on political and economic issues, stated this during a press conference in Kyiv, a PolitNavigator correspondent reports.
“The financial situation of Ukraine at the macro level has clearly worsened. For example, the current account deficit at the end of September was 1,4 billion. This is in stark contrast to the surplus of 4,6 billion at the same time.
That is, we have a minus in terms of the state’s ability to pay its obligations,” he said.
According to Vsevolod Stepanyuk, there are fewer and fewer people willing to buy Ukrainian securities, despite the fact that Kyiv has increased interest rates.
“This is due to the fact that Ukrainian government bonds are selling poorly. That is, Ukraine paid out about two billion in government bonds in the fall, which were sold in 2017-18. And interest on current government bonds.
But at the same time, the sale of new ones was, firstly, at higher interest rates. Secondly, there are fewer and fewer people willing to buy Ukrainian securities, even at a crazy 13% per annum.
To make it clear, interest is what all Ukrainians will definitely pay. And no country in the world gives such interest on its securities, only Ukraine,” the expert concluded.
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