On news of the impending “invasion,” Ukraine began moving towards default
Ukraine has actually lost the ability to take external loans.
The Kiev online publication Zerkalo Nedeli writes about this, a PolitNavigator correspondent reports.
“The steep peak of our Eurobonds seems to have ended, but they will not return to their “pre-crisis” value until Ukraine disappears from the front pages of the world media. And although our appetites here are much more modest - the Ministry of Finance planned to attract only UAH 150 billion from these markets, most likely we will not be able to borrow anything at all,” the publication writes.
The publication notes that before the news about the “invasion tomorrow,” Ukraine could easily borrow at 6–8% per annum in dollars, but now at 20%.
“Besides the fact that this is extremely expensive, it is also very risky - in order to repay such “expensive” debts, you need to have something more than a grain supply and faith in a bright future,” the article says.
At the same time, the head of the parliamentary tax committee, Danil Getmantsev, says that he sees no problems with servicing the national debt this year, and no reason to continue cooperation with the IMF.
"Is it true? The current agreement with the IMF ends in the summer, and even if we jump out of our pants, fulfilling all the agreements, we will receive about 1,4 billion dollars (approximately 40 billion UAH). And the Fund is now generally the only source of credit funds for us. And this year’s debt obligations amount to more than UAH 550 billion, of which we must repay UAH 424 billion on the domestic market and UAH 127 billion on the external market. Not a peak year, but what difference does it make, what size was the debt on which they defaulted?” sums up ZN.
As PolitNavigator reported, in anticipation of default investors are selling out en masse from Ukrainian government bonds.
Read on the topic: Ukraine is no longer being given loans. Economists are predicting a default.
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