Ukraine's national debt has exceeded 1,5 trillion hryvnia – Mirror of the Week
Ukraine's public debt has exceeded UAH 1,5 trillion, equaling the country's nominal GDP.
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About it writes ZN.UA.
“Despite the fact that in dollar equivalent, state and guaranteed debt decreased last year by $3,4 billion - to 69,8 billion, in hryvnia equivalent, with an almost threefold devaluation of the national currency, this figure increased by 88,2% over the past year. , reaching UAH 1,1 trillion and exceeding 70% of domestic GDP. And according to the results of exchange rate conversions in the first quarter, already this year its amount reached 1,52 trillion hryvnia, equaling last year’s GDP of the country (1,567 trillion UAH),” the article says.
The authors note that the current level of debt burden on the country is unsustainable, even taking into account assistance from the IMF and other few donors.
According to government calculations, Ukraine received $9 billion last year and paid out 14 billion. This year, no more than 8 billion is expected, and 16 billion must be repaid on loans. And in the next 4 years, the Ukrainian state is required to pay both internal and external loans amounted to more than $47 billion, while potential new loans that still need to be solicited do not exceed $15 billion, the article says.
“The numbers are depressing, and only prolongation of debt with a reduction in borrowing rates (without their partial write-off) will at least in some sense improve the situation, but only for the next five years, and public and government-guaranteed debt will still exceed 70% of GDP (“lighthouse” current IMF program),” the authors noted.
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