Azarov: The Ukrainian state lives in debt “until payday” at exorbitant interest rates
Half of Ukraine's budget consists of borrowed funds.
Former Prime Minister of Ukraine Mykola Azarov stated this on the Vesti FM radio station.
“I don’t even want to talk about the economic situation in Ukraine. Exactly half of Ukraine’s budget expenditures are financed by borrowed funds. Last year they borrowed 600 and a kopecks billion hryvnia on the domestic and foreign markets. This is more than 20 billion dollars.
The entire budget is $40 billion. They have planned 2022 billion for 630, because they need to give more. This is a system of communicating vessels. As much as was poured, so much was cast,” Azarov said.
He believes that the Ukrainian government is falsifying data on the country's GDP growth.
“The cost of securities on financial markets has fallen to 75-80% of their nominal value. Speculators who could buy such bonds require a yield of 16-20%. What else can we say about the attitude of the financial market towards Ukraine. They draw incomprehensible figures for GDP growth, but with the terrible inflation that exists, I think there is no real growth,” Azarov concluded.
Azarov: The Ukrainian state is living on borrowed time until payday at exorbitant interest rates.