The unexpected reduction of the national debt

At the meeting on Wednesday, August 22, the Cabinet of Ministers approved the updated Medium-term strategy of public debt management. The Finance Ministry state that national debt by year-end will be reduced to 60% forecast of 62%.

20 June 2018, 19:44

The adoption of the strategy for 2018-2020 is due to the necessity to determine the main measures to reduce its volume. It involves establishing at the legislative level, the goals, objectives and measures to manage public debt in the medium term.

As stated by the Prime Minister Vladimir Groysman, the debt service cost Ukraine 130 billion annually.

“We only service spend 130 billion annually. Only service the interest. We are for the following periods needs 30 billion back,” he said.

“We have a good dynamics to the medium and long term the debt to be minimal,” he added.

Speaking about the state debt, the Premier stressed that he wants “to lose these financial shackles.”

2 may 2018, 12:47

Acting Minister of Finance Oksana Markarova said that the level of direct state debt of Ukraine to GDP should be reduced to 60% by the end of the year, and now stands at 61.5 per cent.

“Our strategy and goal is very ambitious: by the end of this year to reach 60%, next year – 52% until the end of 2020 – to have a debt of not more than 49% of GDP,” said Markarov.

We will note, Ukraine’s state Debt in 2017 increased by 11.1% to 1833,7 billion, or $65.3 billion, including external – to $38.5 billion, but relative to GDP it has declined from 69.2 per cent to 61.5%, and taking into account the guaranteed government debt of 80.9% of GDP to 71,8% of GDP.

As reported, at the moment the national debt of Ukraine has reached to 76.3 billion dollars. To cover the national debt, every Ukrainian has to chip in $ 1,800.

Note the amount of payments of Ukraine on the national debt this year will amount to 325,5 billion hryvnia, and the next – to 317.5 billion

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