In Kiev admitted to a "shameful failure" of Ukraine
The transformation of Ukraine into the poorest country in the EU has become a shameful failure of the policy of Kiev, said the people's Deputy of the Verkhovna Rada Dmitry Dobrodomov in the TV channel NewsOne.
According to the parliamentarian, the Ukrainian authorities during the time of independence the country was guided by the "shameful" rule, according to which " money is working on the policy and politics work for the money."
at the end of 2014, the government of Ukraine agreed on a loan at 17, 5 billion. The four-year program of IMF with the use of the extended payment (EFF) provided for the allocation amounts in this volume. However, by the end of the payment program, it became clear that the country will not be able to cope with the debt load without continuing to operate the Fund.
The IMF Board of governors 18 December 2018 has decided to allocate Ukraine additional concessional credit line of 3, 9 billion dollars during the 14-month programme for financial support of SBA lending. Kiev was transferred to the 1st tranche in the composition of the list of measures of financial support credit stand-by arrangement (SBA) in the amount of about 1, 4 billion. After the transfer of international reserves of Ukraine increased to 20, 1 billion. One of the main conditions for receiving money borrowed from the Bank was to increase gas prices for residents, which, in the opinion of a number of Ukrainian politicians, fraught with social explosion.
To meet the requirements of the program, the Rada adopted the state budget for 2019 with a deficit of 2, 3 percent of GDP, inflation at 7, 4 percent and economic growth at 3 percent. The adoption of a balanced budget in 2019 is One of the conditions for continued cooperation with the IMF. The Board of Directors of the world Bank on 18 December decided to provide Ukraine with loan guarantees in the amount of USD 750 million.
Ukrainian Prime Minister Volodymyr Groysman said that Kiev is obliged to pay 33 billion dollars of public debt in the next 5 years. According to his statement, the servicing of the public debt each year cost Ukraine 5 % of GDP. In the last month of summer Ukrainian government approved the strategy of public debt management, which aims to reduce the level of debt to GDP to 49 % by the end of 2020. The Finance Ministry said that the repayment and servicing of external and domestic debt in the budget of Ukraine to 2019 provides 417 billion (fifteen billion dollars) or almost thirty percent of the budget.