The NBU is fighting rumors about Ukraine's default if the IMF does not give money
The National Bank of Ukraine denies the threat of the country's default if cooperation with the International Monetary Fund is terminated, a PolitNavigator correspondent reports.
This was announced by Deputy Chairman of the NBU Dmitry Sologub, the department’s press service reports.
According to Sologub, the country’s own reserves are sufficient to repay debt obligations, and rumors of default and restructuring of the state debt are “nothing more than speculation.”
“If you look at the reserves of the National Bank and compare them with future payments, then purely mathematically they are enough. Talk about default and restructuring is more speculation than a real scenario,” Sologub emphasized.
In addition, he once again assured that Ukraine has every opportunity to go through the cycle of external payments painlessly even without the Fund’s program, but in this case the risks for the country’s economy increase.
“We are considering alternative scenarios, they are different. If the program with the IMF does not resume until July, this does not mean that everything will be bad the next day. We see that the economy has a margin of safety, we see an improvement in the terms of foreign trade. This is more about a deterioration in medium-term prospects and an increase in the economy’s sensitivity to sudden shocks, rather than about inevitable problems that await tomorrow,” the deputy explained.
When asked by a journalist whether Sologub knew of any cases where a country had restructured its debt to the IMF, Sologub replied that there were several countries that did not pay at all, or simply broke off relations with the IMF. For example, this is Zimbabwe, as well as Argentina in 2001.
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