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 Ukrainian Politics, Economics
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 Ukraine’s foreign debt decreased by $23.5 billion over year, - PM Yatseniuk

Ukraine managed to reduce its gross external debt by $23.5 billion or 16 percent over the year.

Prime Minister of Ukraine Arsenii Yatseniuk said at a Cabinet meeting, Censor.NET reports citing Ukrinform.

"The gross external debt decreased by $23.5 billion over the year. We have reduced debts by 16.5 percent. In addition, we have reduced the national debt and government-backed debt by almost $7 billion," Yatseniuk declared.

The prime minister also noted that the debt service was the key problem.

"The major challenge we face is, of course, the debt service. It was not us who borrowed those funds. But we write them off, we restructure them, and we raise credit facilities that are several times cheaper than those raised by our predecessors," Yatseniuk said.

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He elaborated on the actual reduction of the budget expenditures on debt service.

"While we were paying 7-10 percent earlier, it is now only one percent thanks to our program with the IMF. That is why we have managed to reduce the actual expenses of the state budget for the current year by almost 65 billion hryvnia (about $2.4 billion) through a massive program of restructuring and writing off debts," Yatsenyuk stressed.

The prime minister also reported on the results of fiscal stabilization.

"If we take the consolidated government deficit in 2014, it was more than 10 percent. It is four times smaller now due to the fiscal stabilization - 2.5 percent. It means that we had to allocate 10 percent of total budget revenues earlier to close the gap as the government deficit was 10 percent, while it has now decreased to 2.5 percent," Yatseniuk said.
 
 
 
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