Ukraine’s debt burden on the economy and the state budget increased in the first half of 2020, and by the end of the year the ratio of the public debt to GDP risks exceeding the safety threshold as defined in the Budget Code. This was stated OPPOSITION PLATFORM – FOR LIFE MP Serhiy Lovochkin.

“The situation with the public debt is deteriorating. By the end of 2019, the ratio of the public debt to GDP was slightly over 50 percent; it reached about 58 percent in the first six months of 2020, and will reach 62 percent by the end of this year as evidenced by data on borrowings and repayments. At the same time, the Budget Code provides for a 60-percent debt safety threshold. The government must stop increasing the public debt, for Ukraine has no money to repay the loans,” the politician said.

He said the government debt increased by 13.6 percent (+270.9bln hryvnia) in the first six months of 2020, including 106.8bln hryvnia of excess of borrowings over the repayment of the public debt.

“The policy of repaying previous loans with new ones leads to continuous increase of the total amount of the public debt. The nation spends annually three times as much on repayment and debt service as on healthcare and education combined,” the MP said.

“This practice must be stopped. Given the emergency, OPPOSITION PLATFORM – FOR LIFE advocates introduction of statutory ban on excess of borrowings over loan repayments. The funds for budget must be earned through development of the economy instead of loans,” Lovochkin said.