Ukraine will cease to take out loans, when will be able to pay off debt
Completion of cooperation with the International monetary Fund (IMF) in 2023 will mean that the Ukrainian economy is able to service its public debt. This was announced by Director of the Department for debt policy of the Ministry of Finance of Ukraine Polina Yarovaya.
As recalled by a Spring, borrowing from the IMF does not now come directly to the state budget.
“And that comes from the International monetary Fund, goes to support the reserves. That is, NBU… No need for IMF support would mean that our economy is strong enough. So will she be strong enough to service their debts and their needs on their own,” she said.
The representative of the Ministry of Finance reminded that the policy of the Ministry aimed at reducing the risks of public debt. “One of the biggest risks is foreign exchange risk. That is, developing the internal market in the national currency, we reduce the foreign currency share of the debt. So it is not necessary to increase external borrowing,” she added.
Spring said that public debt and government borrowing are tools that are used by all countries in the world. “The presence of public debt is not a problem. The problem is a safe level. Accordingly, the cost of maintenance, which we are now trying to reduce. This is one of the prerogatives of the policy of the Finance Ministry,” she said.
We will note, the Minister of Finance of Ukraine Oksana Markarova said that Ukraine should end cooperation with the International monetary Fund (IMF) in 2023 after a three-year program.
Recall, the financing of the General Fund of the state budget in 2020 is planned at the expense of government borrowing in the amount of 342.5 billion. The amount of payments on the state debt in 2020 is expected to be $ 282,1 billion. Thus the difference repayment and borrowing debt by 2020 should amount to 81.1 billion UAH, that is 6.9% of the budget expenditure, which is planned at the level of 1180 billion.