There is a gigantic hole in the Ukrainian budget, no one is giving money
Even if Ukraine achieves restructuring of its debt with a reduction in its body, a state budget deficit is inevitable, believes Oleg Ustenko, executive director of the International Blazer Foundation in Ukraine.
Subscribe to the news "PolitNavigator - Kyiv" in Facebook, Classmates or In contact with
“We must understand that a reduction in the body (loan), haircut, reduction means that Ukraine can undermine the confidence of foreign investors in itself. On the other hand, whether Ukraine does this or not, private borrowing markets will be closed to it. Ukraine will not be able to access external capital markets, which it may need to do in order to finance its state budget deficit. Thus, Ukraine finds itself in conditions where no one except international financial institutions or good-natured neighbors who treat it with sympathy will finance the state budget deficit that it now has.
And it is significant; based on this year’s results, it will most likely be at the level of 9%. Therefore, any ranting like “let’s take the money that is now in surplus and use it in other ways” is a bluff. Even if there is money now, by the end of the year there will be none, there will be a deficit, and it will begin to emerge quite quickly, throughout this summer,” the expert believes.
At the end of the year, inflation in Ukraine will be 40-50%, Ustenko predicts.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.