Ukraine is a resource rich country with warmmild climate, developed industry and industrious people. She began her way without having a national debt. Now you can only sympathize with what foreign debt Ukraine accumulated by 2015.
Ukraine began its history as an independent state in 1991. Russia became the legal successor of the USSR, including she assumed obligations for the debts of the former Soviet republics.
The starting point of "credit history" of Ukraine can bebe considered July 15, 1992. On this day, the Verkhovna Rada legalized state guarantees for loans from Ukrainian enterprises, which many of them took advantage of. In total, $ 2 billion was raised in this way. Most of these funds were paid by Ukraine. The external debt of companies, now to the state, has not yet been repaid.
In 1993, the build-up of public debt continued andreached $ 3.6 billion. Ukraine received its first loans in Russia. The new states did not yet have their own currency and the Russian ruble was in use. Using the gaps in the legislation, Ukraine actively "printed" electronic rubles, paying them for Russian goods. The eastern neighbor considered such behavior as fraud, and these amounts were later recorded as a commodity credit.
Since 1994, Ukraine has begun to look closely tointernational credit organizations. To borrow money there, it was necessary to strictly observe financial discipline. The uncontrolled issue of money from the end of 1994 stops. To replenish the budget, the National Bank is developing a program for issuing government bonds in Ukraine. Their feature was short maturities and high interest rates.
Облигаций в 1995 году удалось продать на сумму 300 million hryvnia, next year already 1.5 billion. Naturally, such a policy led to difficulties in servicing the national debt. In 1995, Russia wrote off part of the debt in the amount of $ 1.1 billion and postpones the maturity of the remaining part to 1997, goes to a number of other concessions - in particular, it accepts payment for gas by state bonds.
The deficit budget remained in 1997.But it was not possible to attract entirely $ 1.145 billion abroad - international financial institutions were not satisfied with the pace of the reforms being carried out in the country. Lack covered the usual way - the issuance of high-yield bonds. The hour of reckoning came in 1999. The state was not able to pay interest on the bonds and went on a review of the terms of payments. Were delayed payment and reduced interest on debt obligations.
1999 was the hardest year for the economy of Ukraineyear in its history. The devaluation of the hryvnia, a record low GDP and default occurred this year. By January 1, 2000, the national debt amounted to $ 12.5 billion, or 60% of GDP. The increase in the payment period and the positive price dynamics in the metallurgy and chemical industry ensured Ukraine an economic growth up to 2008. During this period, borrowed funds were practically not raised, and the total debt gradually decreased.
World crisis hurts Ukrainianthe economy. To overcome the negative trends, a loan of $ 16.5 billion with a maturity of 15 years was agreed with the IMF. The gas conflict with Russia also belongs to this time, when the refusal to pay for the consumed gas forced Gazprom to cut off fuel supplies. The crisis continued in 2009.
On the diagram showing the external debt of Ukraineover the years, it is easy to notice the rise that falls on these 2 years. If in 2007 it amounted to $ 54 billion, by the beginning of 2010 it had already grown to $ 103 billion. As a result of the crisis, the ratio of Ukraine’s external debt to GDP sharply jumped from 55 to 85%.
The economic downturn ceased in 2012, in the 2ndquarter was even some growth. In the next 2 years, there was a decrease in GDP by 1-2%. The economy was in a precarious equilibrium, but the political upheavals of the end of 2013 - the beginning of 2014 caused its rapid decline.
Violent change of power in February 2014led to unrest in eastern Ukraine. Russia has suspended the allocation of the 2nd tranche of the loan totaling $ 15 billion, agreed with the previous government. Ukraine, whose external debt to Gazprom has reached indecent amounts, has become forced to purchase gas on a prepaid basis. From that moment on, the opportunity to attract money from Russia was lost for Ukraine.
The new regime badly needed external feed inties with the secession of the Crimea and the war in the Donbass region, whose contribution to the country's GDP reached 20%. Ukraine, whose external debt has reached alarming proportions, could count on IMF assistance. Help was provided, but with a number of conditions.
The standard requirements of the IMF for the states that fell into the financial hole - reducing budget expenditures, raising tariffs for the population, tough financial discipline.
Economic problems and decline in gold and currencyreserves caused the devaluation of the hryvnia 3 times. Servicing foreign debt denominated in US dollars has become a daunting task. The external debt of Ukraine, whose repayment schedule resembles a minefield, threatens to lead the country to default at any time. While it is kept afloat, only more and more new loans.
