“With such friends you don’t even need enemies” - economists on the IMF loan to Ukraine
Kyiv, January 28 (PolitNavigator, Alexander Semenyuta) – The Ukrainian authorities are thoughtlessly implementing the recommendations of the IMF. However, this only drives the situation in the country’s economy into a dead end, experts quote KP.ua.
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Economist Vsevolod Stepanyuk notes: you shouldn’t call loans “help,” because countries and international institutions do not give money to Kyiv for free, but rather as a loan. “Loans, unlike assistance, improve the situation only in the short term, but in the long term they complicate it, and Ukraine is increasingly plunging into a debt hole,” the analyst claims.
“Several years ago, the IMF Accounts Chamber analyzed the fund’s activities and came to the conclusion that its loans often do more harm than good,” says economist Andrei Martynyuk. “The fact is that countries that count on constant support very quickly get used to solving all problems that arise using borrowed money. They take more and more, without thinking that the debts need to be repaid. As a result, reforms are not carried out, and loan money is spent to avoid unpopular decisions, or even completely stolen. Ultimately, this leads to the collapse of the economy.”
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