Ukraine's debts must be paid by its population
Although there will be no shocks in the Ukrainian foreign exchange market this year and Ukraine is still able to pay its external debts, to a large extent the funds for payments come from the population, which is forced to sell foreign currency.
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Economist Vsevolod Stepanyuk announced this at a press conference in Kiev, reports a PolitNavigator correspondent.
“Ukraine is quite capable of giving away 2,7 billion dollars. Next year the amount will be larger – about 4 billion. The lion's share of this money is the repayment of debts to the IMF, for which money in reserve from previous IMF loans or from new revenues under the current program will be used. 2019 will be much more “interesting,” when, according to various estimates, it will be necessary to pay from 4,5 to 5 billion. Basically, this is the repayment of those bonds that, so to speak, were restructured by Yaresko on conditions that were quite difficult for Ukraine. This money will already be given from some budget revenues or from NBU reserves,” the economist said.
“Can Ukraine service debts and repay them? In principle, if you look at the current state of affairs, then today – yes. The most interesting thing is that the main sponsor of the state is the population. Thus, in May, the population handed over more currency than it bought - by half a billion dollars, in June - by $400 million. All this money basically went into reserves. That is, it is mainly the population that services debts. And the state may well make the population hand over even more currencies. How? It’s very simple - he will raise tariffs again. Naturally, the delivery of foreign currency will increase sharply as the cost of living in the country rises,” Stepanyuk predicts.
Ukraine's population is forced to pay for its debts.