In his interview to Sejchas magazine, Victor Pinzenyk, Ukraine’s Ex-Minister of Finance and a leader of the Reforms and Order Party, voiced an opinion that Yanukovych’s practise of deficit budget defray at the expenses of external borrowings may result in inability of Ukraine to pay off its debts.

“The country is being dragged into debts. May be current 2.6% of GDP is not so critical now, but it will the critical one in two-three years. Let’s see the official data: GDP is supposed to be about $188 milliard by 2010 and correspondingly, the debt must be scaled up by 20% of GDP ($37.6 milliard). Currently, the state debt is $14.8 and it will be increased by 2.5 times by 2010,” said Pinzenyk.

Ex-Minister drew attention to an increase in debt service cost in 2010 which will be over $3.8 milliard. He also stressed that the sum of $188 milliard exceeds $19 milliard of current national currency reserves: “Such hazardous policy resulted in the default of 1998.”


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