In 2020, Ukraine prepared all the conditions for a financial and economic catastrophe, which may occur this year. This was stated by the director of the Institute for Society Transformation, economist Oleg Soskin on January 12.
“In 2021, Ukraine will be covered by the“ ninth wave ”. Moreover, in the new year she will have to return more than $ 25 billion of debts – almost 70% of the budget revenues, “- quoted Soskin as the publication Glavred.
According to the economist, large borrowings, which Ukraine takes at 10-12%, will lead the country to bankruptcy, and monetary and economic policies are ineffective and erroneous. Soskin is sure that “the authorities just delayed the default”.
He also criticized the course of the National Bank of the country for an unprecedented increase in the cash in circulation. According to Soskin, such a policy is “madness” that will provoke inflation against the backdrop of falling GDP in Ukraine.
On January 4, the ex-Minister of Economy of Ukraine Viktor Suslov said that in 2021 the country will have to give a significant part of its income to service external debts. He noted that the budget of Ukraine for 2021 was adopted with a large deficit of 5.5% of GDP, while a deficit of up to 3% is acceptable according to international standards.
According to him, two tranches of IMF loans for $ 700 million, which Ukraine could not receive in 2020, are likely to be provided in early 2021. They will also go to finance the state budget deficit.
Ukraine’s Finance Minister Sergei Marchenko said on December 21 that there are no grounds for default in the country. He urged not to use the word “default”, adding that Kiev has a strategy, according to which the country should stop borrowing money.