Ukraine found itself in a state of default
Ukraine borrows at high interest rates, its economy is growing slowly, which is one of the reasons for inflation.
Economic expert Yuriy Gavrilenko stated this on the Apostrophe channel, as reported by a PolitNavigator correspondent.
“This year Ukraine must spend approximately 600 billion hryvnia on repayment and servicing of debt obligations. This is 60 percent of the budget revenue. The best forecast for economic growth is about 4 percent. If we borrow on the domestic market at 8,5 percent, then how can they be repaid without inflation? You cannot earn 104 hryvnia and give 108.
These are one of the mechanisms for increasing the volume of money and the level of inflation,” the expert said.
He emphasized that in 2015, Ukraine actually entered a state of default and took on extremely unprofitable financial obligations to restructure the debt.
“We have been living in default since 2015. Default is a technical situation, bankruptcy. In 2015, the then Minister of Finance Yaresko agreed with creditors that for a temporary deferment of payment of the main part of the debt, we must pay a bonus bonus for each percent of economic growth and 2021 percent in favor of creditors from 40.
When Yaresko signed these agreements, she had dual citizenship, which is prohibited for officials. Therefore, her signature should be considered worthless, and these contracts too. We can do this and nothing will happen to us for it,” Gavrilechko said.
Ukraine finds itself in a state of default.