Ukraine – resource-rich country with warm climate, developed industry and hardworking people. Your way she started, not having debt. Now we can only sympathize with what Ukraine's foreign debt accumulated by the year 2015.
Ukraine began its history as an independent state in 1991. Russia became the legal successor of the USSR, including she took obligations for the debts of the former Soviet republics.
The starting Point “credit history” Ukraine can be considered 15 July 1992. This day the Verkhovna Rada legalized state guarantees on loans of Ukrainian enterprises than many of them took advantage. Just thus attracted $2 billion a Large part of these funds has paid Ukraine. The external debt of the companies now already to the state, not repaid so far.
In 1993, the debt build-up continued and reached $3.6 billion in Its first loans, Ukraine received in Russia. In the new States was not yet its own currency and was in the course of the Russian rouble. Taking advantage of the gaps in the legislation, Ukraine is actively "printed" electronic rubles, paying them for Russian goods. Its Eastern neighbor, this behavior was regarded as a fraud, and these amounts were later decorated as trade credit.
Since 1994, Ukraine began to look to international lending organizations. To borrow money required to strictly observe financial discipline. Uncontrolled money issue since the end of 1994 is terminated. To Supplement the budget of the national Bank is developing a program for the issuance of government bonds in Ukraine. Their feature was the short maturities and high interest rates.
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Bond in 1995, was able to sell for 300 million hryvnia next year to 1.5 billion. of Course, this policy led to difficulties in servicing debt. In 1995 Russia writes off part of the debt of $1.1 billion and postpones the date of repayment of the remaining part of 1997, talking to a number of other concessions - in particular, accepts payment for gas by government bonds.
The budget Deficit remained in 1997. But to attract overseas entire $1,145 billion failed – international financial institutions are not satisfied with the pace of the ongoing reforms in the country. Lack coated in the usual way – a high yield issuance. The day of reckoning came in 1999. The state was unable to pay the interest on the bonds and went on the renegotiation of the payments. Was pushed back the timing of payments and reduced interest on debt obligations.
For the economy of Ukraine 1999 year was the most difficult year in its history. The devaluation of the hryvnia to a record low GDP and a default occurred in this year. By 1 January 2000 the national debt totaled $12.5 billion, or 60% of GDP. The increase in life benefits and positive dynamics of prices in metallurgy and chemical industry ensured that the country's economic growth until 2008. During this period the borrowed funds is almost not involved, and the total debt gradually decreased.
The Global crisis has caught the Ukrainian economy. To overcome negative tendencies with the IMF was agreed a loan of $16.5 billion with a maturity of 15 years. By that time, and the gas conflict with Russia when refusing to pay for the consumed gas has forced Gazprom to cut off the supply of fuel. The crisis continued in 2009.
In the diagram showing the external debt of Ukraine by years, it is easy to notice the rise attributable to these 2 years. If in 2007 it amounted to $54 billion, by early 2010 had grown to $103 billion as a result of the crisis, rose sharply, the ratio of external debt to GDP – from 55 to 85 %.
The Recession ended in 2012, in the 2nd quarter was even some growth. In the following 2 years has been to reduce GDP by 1-2 %. The economy was in a precarious balance, but the political turmoil of late 2013 - early 2014 caused her rapid decline.
The Forced change of government in February 2014 has led to unrest in the East of Ukraine. Russia has suspended the allocation of the 2nd tranche of the loan amounting to $15 billion agreed with the previous government. Ukraine foreign debt to Gazprom has reached obscene proportions, was forced to purchase gas prepaid. Since then, the ability to attract money from Russia were lost for Ukraine.
The New regime desperately needed external support in connection with the secession of Crimea and war in Donbass – a region whose contribution to GDP was 20 %. Ukraine's foreign debt which had reached alarming levels, could count on assistance from the IMF. Assistance was provided, but with some conditions.
The Standard requirements of the IMF for the States included in the financial hole, – reduced budgetary expenses, increase of tariffs for the population, the tight fiscal discipline.
The Economic problems and the decline in foreign reserves led to the devaluation of the hryvnia 3 times. Servicing the foreign debt, denominated in U.S. dollars, has become a daunting task. External debtUkraine, schedule for the payment of which resembles a minefield, threatening at any moment to lead the country to default. While afloat it hold only new loans.
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TR: https://tostpost.com/tr/haber-ve-toplum/1277-ukrayna-d-bor---mali-udavka-veya-olman-n-yolu.html
Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."
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