Government debt is a debt complex.duties of the country to legal entities, individuals, other states, world organizations that are engaged in issuing loans and providing financial assistance. The public debt of Ukraine consists of several components:
In the latter case, the country must pay an amount commensurate with its percentage share in the capital of the corporation.
The outstanding government loans are divided into two types:
In general, the debt of Ukraine was formed as a result oflarge financial loans, contracts and agreements for the issuance of credit and loans. This also includes old loans for which the government has requested a deferment. Here we are talking about such concepts as the prolongation and restructuring of the debt of Ukraine. Restructuring is a concession to the debtor, which is used as an exception. Such a force majeure may be the difficult financial situation of the borrower, in relation to the country - a default.
Since 2012, Ukraine’s debt has increased by $ 26 billion. For the current year, the state has agreed with the International Monetary Fund for several more credit tranches.
Current state financial policyprovides not so much the repayment of old debts, as the possibility of taking new ones. And the goal is as large as possible loan amounts. That is, in 2016, the Ukrainian government gained credits totaling $ 10 billion, and paid off debts by only one and a half billion.
Former Prime Minister of Ukraine Arseniy YatsenyukHe said that during his work, the state had learned to take the “right” loans and reduce the amount of debt. This conclusion was made as a result of the signing of the restructuring agreement. Most of the creditors went to the deal and partially wrote off Ukraine debts. This led to the fact that the total amount of loans decreased from 73 to 66 billion dollars. If you divide the total amount of loans for the entire population, then for each resident of the country accounts for about two and a half thousand dollars.
But even with some positivemoments, the debt of Ukraine is still growing. So, since 2014, as a result of the depreciation of the national currency, the national debt has grown at an estimated trillion hryvnia.
One of the loans that did not touchrestructuring is the debt of Ukraine to Russia. It remains the same and amounts to 3 billion dollars. And this is only a fifth of the amount requested by Viktor Yanukovych back in 2013. The initial amount agreed was $ 15 billion.
Having been refused by the Russian Federation to the request to write off part of the debt,The government of the country announced the suspension of its actions to repay this loan due to extraordinary circumstances. That is, the state has officially announced its financial insolvency.
Since the beginning of 2016, the Russian Federation has declared its intentionsue But even though a creditor and more radical measures were taken to return the money, the Cabinet of Ministers says that the agreement can be reached out of court. Now there is a dialogue on this issue at various levels, but Ukraine’s debt to Russia remains unpaid.
Part of government debt isbonds that were acquired by the companies Oschadbank, Ukravtodor, Yuzhnoye Commercial Bank, Ukrainian Railways. In general, the amount of listed Eurobonds is 16 billion dollars.
Кредиторами страны являются в основном international financial organizations such as the World Bank, the International Monetary Fund, the EU, the European Bank. Two years ago, the Ukrainian government agreed on a four-year program, the essence of which is that the IMF will send credit tranches in exchange for a certain reform of the economy.
Experts in the field of economics say in one voice that it is rather difficult to service a large number of loans. In the current situation, the state cannot exist without borrowed funds.
The actions to regulate credit policy include the development of the economy, attracting foreign investment.
The critical level of debt is 60% of GDP.And this milestone was long ago passed by the state. All government actions in the current year will be aimed at ensuring that the debt of Ukraine in percentage ratio is less than the critical indicator.
