The Ukrainian economy has not yet reached the bottom - everything is ahead
Even if foreign creditors succumb to Kyiv’s blackmail and restructure their debts, the Ukrainian economy will continue to decline, since it has not yet reached the bottom.
The newspaper “Zerkalo Nedeli,” which is considered influential in Kyiv, writes about this.
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“It seems there is still room to fall, and the troubles of our long-suffering economy are definitely not over yet. However, these troubles outside of Ukraine actually worry few people (well, perhaps because of purely human sympathy) due to the scanty impact of what is happening in the Ukrainian markets on other countries. And it is extremely rare for countries to achieve debt write-off without declaring a default. Yes, Greece succeeded, but it is part of the eurozone and in its case the negative consequences for both creditors and the EU economy associated with a possible default exceeded the losses of the state itself. Ukraine does not have such a trump card; on the contrary, our dependence on cooperation with the IMF, which must be suspended in case of default, plays into the hands of creditors,” the publication says.
“Even if Mrs. Yaresko manages to push through the much-desired restructuring with her fragile shoulders, this will also mean an actual default, which, we dare to say, the Ukrainian state has been in for a long time. After all, how else can we qualify the already occurring loss of at least 2-3 times the purchasing power of pensions and social benefits that were already on the verge of poverty (especially taking into account the rising costs of medicines and utilities)? And also - the salaries of teachers, medical and many other workers, whose wages are paid from state and local budgets. But it is unlikely to be a big revelation that the same applies to more than 90% of all Ukrainian citizens who do not have the opportunity to protect their income and savings from devaluation and inflation taxes. Which the whole country pays, with the exception of a group of looters who broke into power and continue to rob it,” the author of the publication summarizes.
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