This year, Ukraine should pay $ 3.5 billion in foreign debt and $ 5.5 billion in domestic, without the support of donors, Kiev will not be able to do this, said Prime Minister Denis Shmygal.
Prime Minister of Ukraine Denis Shmygal said on ICTV March 30 that without the support of international financial organizations in Ukraine, a default is possible.
This year Ukraine should pay $ 3.5 billion in foreign debt and $5.5 billion – inwardly, Shmygal reminded.
“Given the challenges that confront us with the coronavirus pandemic, we must first of all direct money to protect the lives and health of our citizens, and not to pay off external debts. Therefore without the support of international financial organizations, in order to pay off external and internal debts, we’ll probably just have to fall into the abyss of default, ” – said Shmygal.
He called this scenario “extremely scary.”
“We don’t want it, we don’t suppose such a development of events and we will do everything possible to ensure that the country remains financially stable, has an economic strategy for getting out and overcoming the consequences of coronavirus infection,” – said Shmygal.
The prime minister said that now every country “is trying withto accumulate more money in order, firstly, to go through a period of a pandemic, and secondly, to have enough funds to overcome the consequences. ”
“Therefore, it is extremely important today to work with all donors, not only the IMF. We also work with the World Bank, the European Union, the European Bank for Reconstruction and Development and other financial institutions that can support Ukraine financially. Today, for example, the European Union has allocated 80 million Euro, which is more than 2 billion UAH, to support Ukraine in the fight against coronavirus, ” – said Shmygal.
An outbreak of COVID-19 coronavirus infection began in December 2019 in Wuhan, China. March 11, the World Health Organization announced the spread of coronavirus pandemic. According to the American Johns Hopkins University, as of March 31, the total number of infected people in the world exceeded 788 thousand, of which more than 166 thousand recovered, and 37 840 people died.
In Ukraine, according to the Ministry of Health, on the morning of March 31, 549 cases of coronavirus disease COVID-19 were confirmed, 13 people died, eight – recovered.
Due to the situation in the spread of coronavirus in Ukraine, an economic crisis is possible, Shmygal warned in mid-March. According to the prime minister, the country is more prepared for him than in 2008.
Now Ukraine is negotiating with the IMF on a loan within the framework of the $ 5.5 billion program of expanded financing (EFF) signed at the end of 2019. The Fund said that the adoption by the parliament of a law on improving some banking banking regulation mechanisms and opening the land market “will allow move forward by finalizing the parameters of a new agreement with wider access than previously thought. ”