Due to gas debts, Ukraine is plunging into a debt hole, - Forbes
New York - Kyiv, November 04 (PolitNavigator, Vasily Ablyazimov) - Forbes analysts believe that the Ukrainian government's decision to pay for gas from gold and foreign exchange reserves will lead the country into a debt hole.
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The publication recalls that earlier this year Ukraine entered into a deal to lend the IMF to the country’s economy in the amount of $17 billion. This is more than Ukraine has gold and foreign exchange reserves as of September, namely $16,3 billion, that is, the lender is actually unable to to repay a debt.
Ukrainian Energy Minister Yuriy Prodan said yesterday that Kyiv still has not paid for Russian gas, but seeks to do so “in the near future.”
It appears that more than 20% of Ukraine's foreign reserve fund, the fund that ensures solvency and prevents default, will go to pay Gazprom's overdue bills for Russian natural gas.
Let us recall that last week an agreement was reached between Gazprom and the Ukrainian government to guarantee natural gas supplies throughout the winter. However, the agreement requires Ukraine to pay $31 billion by December 2014, 3,1, and the rest next year.
Meanwhile, inflation in Ukraine reached 17,5% in September. It destroys the lending field. The country's current account deficit widened to $612 million from $91 million in August.
A $1,3 billion tranche from the IMF package recently went directly into the National Bank's reserve account. The country's international reserves of $16,3 billion will fall to $13 billion by the end of the year.
Ukraine is sinking into a debt hole due to gas debt, according to Forbes.