A new wave of defaults of banks and enterprises in Ukraine will begin in May - expert
Industrial enterprises, numerous representatives of small and medium-sized businesses in Ukraine, as well as about 50 banks may find themselves bankrupt as early as May, says Alexander Goncharov, director of the Institute for Economic Development, the channel reports 112 Ukraine.
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“Given this state of the Ukrainian economy, the banking sector can no longer service expensive liabilities, i.e. very high deposit rates,” the expert said. – At this time, profitability in small and medium-sized businesses continues to fall. And if these negative processes continue, won’t it happen that, for example, there will be a cash gap in our banking system?”
Goncharov believes that the increase in tax pressure and utility tariffs has a strong impact on production, trade and small and medium-sized businesses in general. “And, accordingly,” the expert is sure, “a new wave of defaults will begin in May, making it impossible for businesses to service loans.”
“What can we say about small and medium-sized businesses, which are closing by the hundreds, if the mining and metallurgical group of companies Metinvest has already announced that it is in a state of default,” says Alexander Goncharov. “And to be completely fair, last month Metinvest already tried to obtain additional consent from pre-export financing creditors regarding a partial deferment of March and April payments on the principal amounts of loans.”
Goncharov believes that only a plan for the development of the real sector of the country’s economy, which does not exist and will not exist, can save the Ukrainian economy in such a crisis. Until funds to support small and medium-sized businesses appear, as well as a real program for industrial development, the country will continue to be rocked by new and new waves of bankruptcies and defaults, the director of the Institute for Economic Development is sure.
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