Ukraine spends almost 5 billion dollars for external debt servicing. Volodymyr Groysman, the Prime Minister of Ukraine, said about it during the Cabinet of Ministers session on Wednesday, February 14, 112.ua reports.
“We spend almost 5 billion dollars for external debt servicing. For now, we don’t have a possibility to develop the economy without any external financial support,” – he said.
According to the Prime Minister, government received nearly 2 billion dollars of external debt in 2014, and built up only 186 million dollars in 4 years.
“It’s a huge amount of money, which is a burden for every Ukrainian family…If we did not service this debt, which is almost 5 billion dollars per year, we could do a lot of good deeds,” Groysman added.
External debt servicing is when a debtor state repay creditors the main loan and interests on loans.
As Groysman said earlier, the external debt of Ukraine is 83% of GDP. The Ministry of Finance of Ukraine reported that the total public debt, publicly guaranteed debt of Ukraine increased by 0,05% or 0,04 billion dollars in November 2017, – up to 76,33 billion dollars. The total public debt increased to 65,01 billion dollars in November, the guaranteed one is 11,32 billion dollars. External debt is 49,06 billion dollars and internal debt – 27,28 billion dollars.
As it was reported earlier the National Bank of Ukraine expects that the state and the guaranteed debt in 2018 will be lower than 70% of GDP, according to an inflation report published on the institution’s website. The regulator said that it will be caused by further growth of nominal GDP, as well as by the low volatility of the currency exchange rate and gradual reduction of external state debt along with large payments to be made during the period.
In December 2017, the aggregate state (direct) and state-guaranteed debt of Ukraine dropped by $30 million to reach $76.31 billion. At the same time, the state debt nominated in hryvnia rose by 3.86% (UAH 79.67 billion) and reached UAH 2.142 trillion.