Commenting on the current debt situation, Prime Minister of Ukraine Volodymyr Groysman stressed that the Government strategy is to boost economic growth and to reduce the debt burden both on the debt servicing and interest rates.
The Head of Government reminded that current and coming years are considered to be the challenging ones in terms of payment of debts for 2008-2013. It was at the time when the public debt increased by $50 billion which equals to the country's annual budget. At the same time, there have been no changes in the country, money has been spent, and interest payments on debt make up $5 billion dollars annually.
"We include (debt servicing cost) into the budget. But this is not enough. We have to pay our creditors a third of the budget (next year) which amounts to UAH 417 billions. Can we do it on our own? No. What do we need? Access to international markets in order to make relending there, and to reduce the debt burden, including on interest rates. After we will shape a ten-year strategy for economic growth and debt repayment. My goal is to repay debts, so that they will not be a millstone around neck", Volodymyr Groysman said.
The cooperation with the International Monetary Fund is one of the tools for achieving the goal of entering the market and introducing an effective debt policy. The Head of Government is assured that an alternative to this is the default and bankruptcy of the country with a rapid depreciation of citizens’ savings and inflation.
"And if today someone says that we must withdraw (from cooperation and avoid default), I ask: maybe you can in detail how we can manage to do it?",Volodymyr Groysman underscored.