Ukraine's GDP growth goes down the drain - to pay interest on external debt
Payments to service external debts “eat up” Ukraine’s GDP growth.
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Economist Viktor Skarshevsky stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“In Ukraine, the cost of servicing (debt) is very high - more than 6% of GDP in 2018 and about 6-7% in 2019-2020. You can compare this with plans for the growth of the Ukrainian economy. This year it will grow by 2%, in the following years – by 3-4%. That is, debt payments completely eat up this very small percentage of GDP growth. It turns out that we will work not for ourselves, but for external creditors and give back more than we earn.
And since 2012, payments on external debt have been directly linked to GDP growth. If growth is 3-4%, then Ukraine will give 30-40% of its growth to external creditors - thanks to Mrs. Jaresko, who in 2015 carried out a restructuring of external debt in the interests of external creditors. If in money, then from 2012 to 2024 these are tens of billions of dollars in payments from our pockets,” he said.
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