It will take 5% of GDP over two years to pay interest on Ukraine’s national debt - expert
Ukraine has a government budget deficit comparable to Greece's on the eve of the 2010 debt crisis, and is forced to pay about 5% of GDP just to service its debt.
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Oleg Ustenko, executive director of the Blazer Foundation, stated this on air on the Rada TV channel.
“When the Greeks fell into the abyss, they fell from a 13% budget deficit, and we now have 10%. Ukraine has been accumulating its debts all the time, and we have slipped into a state where the volume of internal and external public debt and state-guaranteed debt is about 90% of GDP. It must be paid, at least to pay for servicing this debt. And as a result, the poor country of Ukraine, where the economy fell by almost 20% during 2014-2015, where according to the results of 2016 there is a slight recovery of 1%, will have to give away about 5% of its GDP is simply payment for interest. It is quite obvious that this is an unstable financial condition,” he convinces.
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