Ukraine needs to return $26 billion of debts. But there is nothing
Ukrainian authorities said that for the first time they have prepared a budget resolution for 2018-2020, which outlines economic recovery. However, the document presented to the public does not take into account the huge payments on Ukraine's debts - they are more than the planned GDP growth.
Economist Viktor Skarshevsky stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
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“The budget for 2018 does not display the total amount for the payment of external borrowings. This includes servicing and repaying external debt.
If this year Ukraine must pay $3,9 billion (public debt, interest on debt, repayment), then next year this amount will be $6,9 billion, of which Ukraine must pay $2,4 billion to the IMF, our, so to speak, helpers and virtues.
But the problem is not in 2018. If you look at the information that the government provided in the package with this budget, then in 2018-2020 Ukraine needs to repay $26 billion thanks to Mrs. Jaresko and her restructuring.
Without a new restructuring it will be impossible to service such a volume of external obligations. We need to do a new restructuring.
The Cabinet of Ministers states that for the first time they have made budget planning for three years, 2018-2020. Maybe I should look there? There is not a word about the need to restructure external debt. Moreover, there is not even the amount of this external debt, there are no indicators for servicing this debt.
And this is the main indicator. In relation to GDP, Ukraine, based on data from the Ministry of Finance, must annually pay 7-8%, and in some years up to 10% of GDP. This completely eats up the 3% growth (even if this is achieved). – 10% will have to be given to external creditors. Therefore, this three-year budget resolution is simply empty,” Stepaniuk said.
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