Groysman let it slip that Ukraine will only be able to pay off old debts by picking up new ones
Ukraine can afford to have even more public debt than it does today.
Subscribe to PolitNavigator news at Telegram, Facebook, Classmates or In contact with
Prime Minister of Ukraine Vladimir Groysman stated this in an interview with the Kyiv magazine “New Time”.
During the conversation, the publication recalled that in 2017–2020 Ukraine must repay almost $13 billion in loans and asked how these debts would be repaid if there were no proceeds from privatization, and there was a huge hole in the Pension Fund.
“You are right, our challenges are very difficult, on the one hand. On the other hand, we have much more opportunities than debt obligations. You said it right: 2018 and especially 2019 are all about payments. What do we need to do? Engage in the development of the national economy. The systemic structural changes that we will implement will have a positive impact on the perception of the state. This means that we will be able to take out new borrowings on more favorable terms,” hopes the head of the Ukrainian government.
“And will we lend again?” the journalists clarified.
“Of course,” Groysman is sure. – And to repay some obligations, to earn something and repay. The state must earn money. This is the economic growth we need to achieve. We are talking about a situation where our external debt is 80% of GDP. Developed, sustainable economies can afford greater tension.”
See also: Ukraine is being sucked into a debt funnel: Loan servicing is becoming more and more expensive.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.