In other countries, the national debt much more than in Ukraine, but it is taken at lower interest and for a longer period.
Comments about this correspondent of ГолосUA said economist Boris Kushniruk.
“The amount of debt is not critical. Here is an example: the national debt of Japan is over 200% of GDP. We have approximately 80% of GDP. But for Japan, it’s virtually nothing, and for Ukraine – very much. The problem is how expensive it is to Finance this debt. If in Japan it costs about 1% of the debt, we are paying 8-10%. And if you take the hryvnia, 16 -18%. It is clear that the spending budget just to service this debt are very high,” – said the economist.
According to Boris Kushniruk, not the amount of debt is terrible, and those costs that are related to his service. If they are over a certain level, then it’s bad. We are very high.
“Again, in order that they are less, you need this debt is not only increase, but also to reduce the price. This is only possible provided that the market develops. Then maybe expensive borrowing to change to cheaper and longer term. Because the issue is that these 76 billion needed to repay, for example, for 30 years, and is a whole other story if you want to repay in 5 years. And completely different question – can you do it or not. The size of the debt we have is not critical. The majority of European countries, such as France, Germany, Italy, not to mention Greece, their debt is 130% of GDP. But if this debt servicing is much cheaper than what we have for them is not critical. Ukraine is already critical,” he said.
Recall that the external debt of Ukraine as of June 2.6 times exceeds the volumes of foreign exchange reserves of the country and 76.3 billion. To cover this amount, every Ukrainian has to pay $1800. This is stated in the material of the special project VoxUkraine and LIGA.net.
External borrowings of Ukraine constitute about 60% of this amount and reach of up to 47.2 billion dollars. This amount includes 9.6 billion dollars in government-guaranteed debt, and the rest – direct debt of Ukraine in the form of Eurobonds (about 17.5 billion dollars, given the $ 3 billion “Russian” bonds, for which Ukraine defaulted), as well as loans from international organizations (16.6 billion dollars, including bonds, placed under the guarantee of the U.S.) and other debt ($3.5 billion).