Ukraine's external debt is becoming unsustainable
Ukraine's external debt is growing like a snowball, despite all the government's statements that most of the debts were accumulated by their predecessors before the victory of Euromaidan.
Honored Economist of Ukraine Alexey Plotnikov announced this at a press conference in Kiev, reports a PolitNavigator correspondent.
“The topic of external and internal debt is very problematic for Ukraine. Since 2014, there has been a process of debt growth - like a snowball. And, no matter how hard the authorities try to define these debts as those that “have been accumulated by their predecessors, and they are only paying off,” but, in principle, if you look at the dynamics, it is clear that our debts are not getting smaller.
The amount is accumulating and accumulating for us. The 4,4 billion debts that Ukraine must pay off this year is a very serious amount, it is unaffordable, it requires obtaining some external resources for payments, possibly using gold and foreign exchange reserves.
This year is a very difficult year politically, with double elections taking place. It is the tradition of international financial organizations not to stimulate their cooperation with the country in which elections are taking place, especially since this is not an EU country, where everything is defined and clear, and, in principle, nothing changes.
They are interested in first seeing what will happen there, and then deciding whether to continue cooperation with Ukraine or not,” Plotnikov said.
Ukraine's External Debt Is Becoming Unmanageable