PM notes reduction in Ukraine's foreign debt by USD5 bln over last 15 months

The current Government has reduced the Ukraine’s external debt by USD5 billion - from 73 to 68 billion. The Prime Minister of Ukraine Arseniy Yatsenyuk said this at a board meeting of the Finance Ministry on Monday, 27 July.

He has reminded that Ukraine attracted USD4.6 billion of external loans: "All this money bypassed the state budget. We paid off the debts that we hadn’t incurred."

The Prime Minister has noted that the Government cannot spend this money either on the national security and defense, or the social benefits: "These funds are used to settle financial problems so that Ukraine would not repeat the scenario that took place in Greece. It means fiscal, budget and financial stabilization."

Economic growth, he underlined, can be achieved at the expense of the rest of the funds - in particular, from the World Bank, the European Investment Bank. In general, Ukraine has received USD1 billion of help, USD400 million - on the energy efficiency program.

At the same time, the Head of Government stressed that state-owned companies and local authorities are in no haste to use these funds.

In particular, according to Deputy Minister of Finance of Ukraine Artem Shevelev, Ukrenergo, Ukrhidroenergo, Energoatom, Ukravtodor do not apply the funds.

Arseniy Yatsenyuk instructed to conduct appropriate internal investigations "in all ministries, which defer the use of funds as well as creation of conditions for Ukraine’s economy growth."

He stressed the need to make a protocol decision on the disciplinary responsibility for the insufficient usage of funds from international financial organizations: "The country needs the economy to develop. This is a resource that is used for specific investments, specific infrastructure projects, such as construction, new jobs and wages."