Economist: Ukraine is on the verge of official bankruptcy, creditors will take the gas pipe
Kyiv, January 12 (PolitNavigator, Maxim Karpenko) – Ukraine is on the verge of default. Economist Borys Kushniruk said this on Hromadske TV.
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According to him, the only salvation from the bankruptcy of Ukraine is help from the West and money from the IMF, on which the government of Arseniy Yatsenyuk is counting. However, if this assistance is not provided, default will occur almost instantly.
“We must be sincere that from the point of view of the current economic situation, the ratio of budget revenues and expenditures, if we are talking about the entry and exit of currency from the country and about the gold and foreign exchange reserves that we have, then we can say that the risk of default is we exist. Then Ukraine will not be able to fulfill its foreign economic obligations and if there is no support from the West and we cannot prove to the IMF that we are capable of reforms, then they will not give money and we will be forced to default,” said Kushniruk.
According to him, in the event of a default, Ukraine risks losing a number of state assets.
“There will be an instant devaluation of the currency, in fact this is an admission that we do not have a currency. External creditors will have the right to demand the seizure of all external state assets of the country, such as, for example, NJSC Neftegaz. This will stop any foreign economic assistance to Ukraine, our companies will lose the right to receive external assistance, and so on. But in addition to creditor obligations, we also have commodity obligations. For example, we need to buy gas, oil, uranium, pharmaceutical products, and for this we need currency,” said Kushniruk.
English version :: Read in English Economist: Ukraine is on the brink of official bankruptcy, and creditors will seize the gas pipeline.