The outgoing government’s failures have got Ukraine into total dependence on IMF and other creditors. This was stated by OPPOSITION PLATFORM — FOR LIFE MP Serhiy Lovochkin. The politician is certain that economic growth can help overcome this dependence.
“Faster economic growth is the only way to increase budget income. After the parliamentary election, the new government’s task should be making political goals serve the interests of the economy. Otherwise Ukraine will stick in its debts forever,” Lovochkin said.
The politician cited a recent forecast by the Ministry of Economic Development: Ukraine’s GDP growth will drop from 3.3 percent to 2.7 percent this year.
“This resulted from political decisions by former government which decisions harmed the economy. In 2018, Ukraine’s national debt reached 61 percent of GDP, compared to 40 percent in 2013,” Lovochkin said.
The MP reminded that Ukraine is currently in its peak period for national debt payments and has already faced troubles with its refinancing and servicing.
“This year, one eighth of the state budget expenditures will cover the national debt servicing. About 40 percent of the state budget expenses this year is debt settlement and servicing. National debt payments in 2019–2020 are comparable to gold and foreign currency reserves of Ukraine. We couldn’t even think of such catastrophe in 2013. The new government should comprise people who are able to stop this,” Lovochkin summed up.
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