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  • Prime Minister: Government cooperates with international financial partners to pay off debts rather than accumulate them
    Information and Communication Department of the Secretariat of the CMU, posted 21 October 2018 20:31

    The Government considers  it necessary  to continue collaboration with international financial organizations to ensure the policy of paying off debts and to reduce the debt  burden on the budget, rather than increasing borrowings. This was announced by Prime Minister of Ukraine Volodymyr Groysman  on air of Ukraine TV channel.

    "We are cooperating with the global financial markets to repay the loans that the previous governments imposed on us in 2005-2013. Now we pay a sum worth USD 5 billion annually to the debt servicing which was taken throughout that period", the Head of Government stressed.

    He recalled that one of the conditions for continuing cooperation with  partners, first of all,  with the International Monetary Fund, was the increase in gas prices for the population. However, the hike was significantly less than the primary requirements. "I had two options - to agree on a minimum gas prices increase, thus to continue cooperation or fall into a default. This would mean bankruptcy for the country. Citizens' savings would depreciate amid galloping inflation. I couldn't let that happen", the Prime Minister said.

    At the same time, the Head of Government stressed that the subsidy program was expanded. In May of this year, the Government strengthened control over the recipients of the housing and utilities subsidy to uncover fraud schemes. "There is a e-subsidy register now and we are compensating people expenses", Volodymyr Groysman underscored.

    Prime Minister: Government cooperates with international financial partners to pay off debts rather than accumulate them