Igor Mazepa, CEO of Concorde Capital, comments the recommendation of the Ukrainian businessman Ihor Kolomoisky to declare default in Ukraine
Experts understands that this is only the personal opinion of Mr. Kolomoisky. It doesn’t mean that a discussion should begin at all on Ukraine having to stop making payments on any state debts to international lenders.
Volodymyr Zelenskiy, President of Ukraine, met with Yakiv Smoliy, the Head of the National Bank of Ukraine and they discussed issues on IMF cooperation in a constructive manner.
For the next three years, Ukraine will have quite a tough schedule for repaying its external debt obligations: we will have to pay the IMF USD 5 bn in loan body and interest. At the same time, in 2019-2021 we can receive USD 9.7 bn from the IMF and other international financial institutions working as one team with the IMF. That is, we will receive far more money if we maintain good relations with the IMF.
I would say that there are no grounds to declare a default – Igor Mazepa comments. The economic situation is not so scary for Ukraine. The debt-to-GDP ratio has finally declined to an adequate level of 60%. While in case if Ukraine chooses not to pay its external debts, it would create crisis in confidence in Ukraine from external lenders.
Cooperation with IFIs – that which will help Ukraine to replenish our currency reserves.