Ukraine's former Minister of Economy: The country won’t last long without foreign credits

07.01.2018, Kiev.

Ukraine’s former Minister of Economy Viktor Suslov stated that Ukraine is buried in debt, and can’t exist without external financing, RIA Novosti report on January 7.

The ex-minister pointed out that the bulk of Ukraine’s foreign exchange reserves are accumulated at the expense of external funds provided primarily by the International Monetary Fund (IMF). He also stated that many infrastructure and energy projects, for instance, the construction of new metro stations in Dnepr, Kiev, and Kharkov, have also foreign sources of funding that have to do with receiving IMF loans. To implement these projects and receive funds from the World Bank, the EU, and individual countries Ukraine has to continue cooperation with the IMF.

The ex-minister noted that Ukraine is buried in debt. He added that, although it makes sense to reduce the volume of loans, it is no longer possible.

Ukraine can count on new loans from the IMF in case it fulfills a number of conditions. In particular, the demands include increasing the retirement age, increasing gas prices for the citizens, privatize state property, including mines, and cancel the moratorium on the sale of agricultural land.

Editorial Comment

The Ukrainian government is trying in every possible way to avoid or postpone the implementation of these extremely unpopular measures. But some of the measures are already being implemented. And it is not really an option for the government to count on more lenient conditions taking into account IMF’s tough negotiating position.

Source: Rossa Primavera News Agency

Leave a Reply