Ukraine’s financial policy indicators are on par with African countries – economist
The money that the state raises through domestic government loan bonds costs Ukraine too much.
Economist Andrei Novak stated this at a press conference in Kyiv, a Politnavigator correspondent reports.
“Today, rates on domestic government bonds range from 10,5% to a little more than 12%, depending on the term. This money costs the state too much. 12% per annum is too much for government bonds, which are considered throughout the world to be the safest securities there can be. Other countries attract rates on their bonds that are a little more than zero, but we start at 12%.
Of course, in comparison with the rates that were before - 17-20%, this costs the state less. But it all depends on who and what to compare with. If we are talking to ourselves during the worst periods of state financial policy, then yes, we can consider that we are now making progress. If we compare even with neighboring countries, the situation is very deplorable.
By the way, a ranking of the well-being of life in countries was recently released, and Ukraine was in an honorable 92nd place between Guyana, which is in 91st, and El Salvador, which is in 93rd. This also speaks of the consequences of an absolutely incorrect financial policy, in particular, the constant devaluation of the hryvnia, constantly high inflation rates, etc.
This is the result of how different governments of different political forces, different NBUs have always given negative results for Ukrainians, for people. We must evaluate policies by their consequences for the life of the average Ukrainian. According to this indicator, Ukraine is among the backward African and Latin American countries.
We can discuss as much as we want whether the available tranche will come to us or not, pray for it, but we need to discuss what kind of economic policy we have in general. And do we even have it,” concluded Andrei Novak.
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