Ukraine is on the verge of default

Ukraine inherit miserable fate of Greece

In brief: Ukraine follows in the footsteps of long-suffering Greece. Official Kyiv denies the probability of default.

Former Finance Minister Viktor Pynzenyk considers that Ukraine could follow the path of Greece because of high levels of public debt and budget deficit. “The world is emerging from crisis. That dash that existed have been overcome. The key is the banking sector. As for Ukraine, we are now further than a year ago. 16% of GDP – the budget deficit, the debt of Ukraine – 36%. Therefore, because public debt, we can not avoid the Greek decision. Society needs an honest dialogue “, – said V. Pinzenyk.

In his view, in terms of public deficit Ukraine – one of the world champions. “At this year its amount is 170 billion hryvnia or 16% of the GDP. The 57,7 billion UAH. Deficiency (5% of GDP) as declared by the Government, added to the sum of 30,5 billion UAH. As that provided in supplements to the budget to recapitalize banks. Another part of the deficit is hidden in inflated earnings, which can be estimated at 30 billion USD. The same amount will go to grants “Naftogaz Ukraine”. KnowHow government is the lack of fixed expenditure figures. The five articles of the Law on State Budget allows the government exceed the approved costs “- explained away. V. Pinzenyk believes is urgently needed pension reform, and raise tariffs for gas. “The two main problems that lead to the budget hole, – gas and pension. And the solutions to them are obvious: To solve the first set should be adequate gas prices, so that through the budget does not subsidize its consumption of wealthy citizens. It is necessary to leave the support of the poor – through subsidies “- said the former minister.

Igor Tringlers
2010-06-15 23:24, Economics.

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