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Default possible in Ukraine without external support - Shmyhal

Default possible in Ukraine without external support - Shmyhal
31 of March 2020 г.
Default is possible in Ukraine without external support from international financial institutions, but the government is doing its best to keep the country financially stable, Ukrainian Prime Minister Denys Shmyhal has said.

He said this live on the Freedom of Speech program on the ICTV channel when asked if Ukraine really faces default if the Verkhovna Rada did not vote on the bills needed for financial assistance from the IMF and if the IMF does not provide such support, according to an Ukrinform correspondent.

"Of course, first of all, we have to spend money on protecting the life and health of our citizens, rather than repaying foreign debt. Therefore, without the support of international financial institutions, in order to repay foreign and domestic debt, we will probably just have to fall into an abyss of default. It is an extremely terrible scenario for our country. We do not want it, we do not foresee such a development, and we will do our best so that the country remains financially stable, has an economic strategy for emerging [from crisis] and overcoming the consequences of coronavirus infection," Shmyhal said.

He added that in today's context, it is important to work with all donors, not just the IMF.

"We are also working with the World Bank, the European Union, the European Bank for Reconstruction and Development and other financial institutions that can support Ukraine financially. Today, for example, the European Union has allocated 80 million euros to support Ukraine in the fight against the coronavirus. It is also positive news," Shmyhal said.

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