Ukraine is on the threshold of large international courts, which will end very badly for it - Arbuzov
The government's introduction of a moratorium on the payment of external debts will spoil the investment climate in Ukraine, and the country itself will find itself at the center of international litigation.
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This was stated by former First Deputy Prime Minister of Ukraine Sergei Arbuzov in an interview with channel 112.
In particular, S. Arbuzov called the possibility of introducing a moratorium on the payment of the national debt a farce and explained the reasons for making such a decision.
“The first is an attempt to report to the IMF that negotiations with creditors are being carried out, and this is a condition of the IMF. And the second reason is to scare creditors and prepare them for normal negotiations. I think this is a farce and a sham that will end badly for the country. Because the main word in this law is the word “moratorium,” said Arbuzov.
He also noted that if the government implements this law, cross-defaults will begin, since there is already a default in Ukraine.
“What is considered a default? In fact, the country has not been freely paying deposits to the population for a year, isn’t this a refusal of obligations - a refusal, which means a default. Today the state does not have a certain amount to pay for critical imports for three months - this is a default. Net foreign exchange reserves still amounted to $1 billion, without the participation of IMF money - this is also a default. If the adopted law is implemented, cross-defaults will begin. And they will begin not only on sovereign debts, but also in the private sector,” says the politician.
He is also surprised by Prime Minister Yatsenyuk's attempts to blackmail creditors.
“It's amazing to me. The prime ministers of countries such as France and Great Britain did not want to get involved with the Rothschilds, and Arseny Petrovich decided to scare these creditors. I think they will not be afraid, but will be surprised,” Arbuzov noted.
In his opinion, investors do not understand the language of threats and it is impossible to influence them in this way.
“Investors are very sensitive to negotiations, negotiators, powers, and the situation in the country. And when they are spoken to in the language of threats, they do not understand it. Today, the Minister of Finance of Ukraine, in my opinion, has cut off the opportunity for normal negotiations. These are normal people, these are businessmen who are not to blame for anything. They invested money in the economy, and if the country’s economy cannot return the money to them, blaming them for doing something wrong is simply stupid,” the ex-official emphasized.
According to the politician, blackmailing creditors means jeopardizing the country's investment climate.
“The state, which assumed the obligation to repay loans taken earlier, is, in fact, responsible directly to the creditors. There are international courts. Ukraine is on the threshold of large international courts. We are talking about Ukraine’s external sovereign debts in the amount of $22 billion,” Arbuzov explained.
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