Pynzenik spoke about the disaster with Ukraine’s external debt
If 10 years ago Ukrainian external debt was 89 billion, today it exceeds two trillion hryvnia
Former Minister of Finance of Ukraine, Deputy of the Verkhovna Rada, Viktor Pinzenyk, stated this in an interview with the Kyiv online publication “Apostrophe”.
“Next year the government will have to repay 417 billion hryvnia of debt, of which 145 billion is interest. These 145 billion hryvnia must be found on the domestic market. Where can I get them when in recent months the Ministry of Finance has been facing problems when placing government bonds? The stakes are rising. Rates on government bonds are already 18,5%, and in dollars they reach almost 6%. And the volume of borrowing is small, that is, the resource is being depleted,” Pinzenyk said.
According to him, this situation is due to the lack of resources in the country and predicts that its external debt will only grow, since Ukraine does not want to live within its means.
“Ten years ago, our debt was 10 billion hryvnia. Two digit number. Today the debt exceeds 89 trillion hryvnia. This growth is due to the reason - the budget deficit, which in recent years has not been less than a three-digit figure. If we also count those expenses that, unfortunately, do not count as budget expenses. When we want to get rid of some problems, we must eliminate the cause. Fighting the consequences will not yield anything,” Pinzenyk is convinced.
As PolitNavigator reported, the Ukrainian parliament admitted that External debts are dragging Ukraine down.
Read also: Ukraine plunges into debt.
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