Ukraine "thrown into debt sinkhole": PM Groysman

Economy

The prime minister spoke about the consequences of the country's failure to fulfill IMF requirements.

The economy is growing, but Ukraine has a debt that it cannot repay ourselves, therefore it is necessary to enter foreign markets and cooperate with the IMF, according to Prime Minister of Ukraine Volodymyr Groysman.

Failure to meet the requirements of the International Monetary Fund will put Ukraine on the brink of default,  Groysman said on the air of Inter TV channel.

Read alsoUkraine's central bank expects new IMF disbursement this year

"We were thrown into a serious debt sinkhole. It's obvious that the economy is growing, but we have a debt on our shoulders that we can not repay ourselves. We need to enter foreign markets, restructure our debt and reduce interest," the prime minister said.

Groysman assured that he stood for "reducing the price of resources."

"But failure to meet the requirements will put Ukraine on the brink of a default. Do we want a crisis? I'm not a crisis prime minister, I'm an anti-crisis PM. I will do everything to protect people, reduce inflation, and increase real incomes," he stressed.

The prime minister said that previously, the memorandum was signed with creditors, and then promises were not fulfilled – this undermined confidence in Ukraine.

Read alsoIMF mission arrives in Ukraine

"I have to address the issue. The IMF mission has arrived. We are now working and are in constructive relations. We will report the outcome of our talks in two weeks," Groysman said.

The current IMF program for Ukraine worth $17.5 billion, of which Ukraine received $8.7 billion due to the slow implementation of agreed reforms, ends in the spring of 2019.

The IMF mission arrived in Kyiv on September 6. Following the visit, a decision will be made on allocating another bailout tranche.

A key condition for obtaining the tranche is the increase in gas prices for the population to the market level. Prime Minister Groysman announced readiness for such a step.

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