Ukraine will not benefit from the declaration of default

Ukraine will not benefit from the declaration of default in the current situation, said economy expert Andrey Blinov.

“In my opinion, Ukraine will not benefit from the declaration of default. Greece and argentine provide a vivid example. Restructuring is a more positive way of the external debt problem solution”, said he.

The expert stressed that Ukraine will not be able to leave the spiral of the internal and external debt until it balances the state finances.

“The budget deficit in a loose sense is the deficit of “Naftohaz Ukrainy” Ltd and the Pension Fund, which together constitute about 10% of the GDP. This is a macroeconomic catastrophe, but it is not the fault of the present-day authorities. This is a long-term tendency.

“Naftohaz» and the Pension Fund are responsible for more than two thirds of the budget deficit. They are a burden for the country’s economy. And they have already caused the growth of the state debt up to 60% of the GDP”, explained A. Blinov.