Consequences of Zelensky’s refusal to dialogue with the LDPR: Now the war will finish off the independent economy
The lack of prospects for a peaceful settlement in Donbass deprives Ukraine of any chance of receiving foreign investment. Therefore, in order to support the economy, the government will have to further increase external debt on loans.
Viktor Suslov, Minister of Economy of Ukraine in 1997-1998, stated this on the NewsOne channel, a PolitNavigator correspondent reports.
“I don’t believe that the government will be able to refuse IMF loans after 2023. The questions here are related. What happened at the Normandy Format negotiations? In essence, the situation in Donbass is frozen as a result of the discussions. No agreement has been reached on the reintegration of Donbass.
This situation may continue to develop for many years. Therefore, Ukraine cannot count on an influx of foreign investment, and if the war does not stop, our government will not be able to cope without the IMF.
Now the illusion of stability is created by the fact that the Ministry of Finance manages to place government securities and debt obligations at very high interest rates, selling them to non-residents.
From January to the present, this increase has amounted to more than 100 billion hryvnia (securities in the hands of non-residents). This is more than $4 billion in net increase in debt obligations. This is a worrying factor. This money will have to be returned, paid at 16% or more per annum,” Suslov said.
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