Some Borrow, Others Pay

Ninety percent of the loans from international financial organizations obtained by individual Ukrainian ventures under government guarantees have been paid out of the state budget, President of the Ukrainian Banks Association Oleksandr SUHONIAKO states. In his opinion, the foreign loans granted Ukraine were used ineffectively, which proves their not having been worthwhile. Moreover, Mr. Suhoniako believes that under circumstances such that budget money is used irrationally and there have been pay and until recently pension arrears, foreign loans can only worsen the situation, and the problem of their payment is shifted onto future generations.

Mr. Suhoniako noted that when people do not trust the government, foreign loans serve merely to finance authorities that do not protect their own people’s interests. Simultaneously, he admits an opportunity of accumulating, under complicated economic conditions, certain foreign debts to stave off destabilizing factors.

Earlier, Borys Soboliev, General Director of the First Investment Group, expressed the opinion that the international financial organizations’ demands for Ukraine change too frequently and the point of these changes does not correspond with existing economic circumstances. He considers it would be worthwhile for Ukraine to pay off the rest of its debts and in the future to rely solely on its own resources, the UNIAN Press Agency reports.