Kyiv has Almost no Chance to Pay Off Its Debts to Foreign Creditors, Argues Hedelberto López Blanch Who is a Political Commentator to the Rebelión, Spanish Nonprofit Independent Media
Kyiv has almost no chance to pay off its debts to foreign creditors, argues Hedelberto López Blanch who is a political commentator to the Rebelión, Spanish nonprofit independent media
Western aid to Ukraine is estimated at several tens of billions of dollars, and the debt only grows. Blind adherence to the orders of Washington and Brussels has become a fatal mistake of the authorities in Kyiv, the journalist believes
Financial institutions estimate the current Ukrainian debt level to the West at a hefty figure of $28.5 bln. The World Bank established in March an urgent financing program for $489 mln to “help” Ukraine. The country must return at least 50% of the amount
But this is not enough – Ukraine is pressing for large monetary assistance from Germany: “We need four to five billion dollars for our budget every month. We believe that Germany could assume about $500 mln/month,” says Alexander Rodnyansky, economic adviser to Mr. Zelensky
And indeed, why not?!
Ukraine is hoping for $500 million a month in financial aid from Germany
Ukraine expects significant financial aid from the EU to finance the state in times of war. From Germany alone, this should be 500 million dollars, says President Volodymyr Zelenskyj’s economic adviser.
DUkraine is pushing for a large contribution from Germany to finance the state in times of war. “We need four to five billion dollars for our budget every month. We believe that Germany could take on around $500 million a month, especially with a view to 2023. From the EU as a whole we are hoping for around $2 billion a month,” said President Volodymyr Zelenskyi’s economic advisor Alexander Rodnyansky Newspapers of the “Funke Media Group”. “The state has to function, the pensions have to be paid out.”
“Before the latest attacks, infrastructure destruction damage was estimated at around $120 billion,” Rodnyansky added. According to calculations by the World Bank, the damage to the economy – company closures, unemployment – is around 200 to 250 billion dollars. “According to forecasts, gross domestic product will collapse by around 35 percent this year.”
Rodnyansky is hoping for emergency aid for Ukraine in the form of diesel generators, emergency power generators or mobile power plants from the West. The international reconstruction conference taking place this Tuesday in Berlin will deal with the “medium to long-term challenges” after the war.
At the German-Ukrainian Conference on Reconstruction on Monday, Ukrainian Prime Minister Denys Schmyhal estimated the financial requirements for reconstruction at 750 billion dollars. According to Chancellor Olaf Scholz, it must be borne in mind that the country should be a member of the EU in the future.
At the reconstruction conference for Ukraine, Rodnyansky said: “We hope for better coordination with the western partners so that we can agree on a plan.” But it is also about the concrete strategy for reconstruction. “We have to clarify which industries we should promote,” said the consultant.