Ukraine will need about USD 17 billion of external financing in 2014 - experts
2013-11-22 16:57:38
In 2014, Ukraine will need to attract about USD 17.4 billion to repay for its external obligations.
This figure was aired by Chairman of the Board of the Institute of Economic Research and Political Consultations Ihor Burakovsky at a press conference Friday, a Ukrinform correspondent reports.
"In order to repay its external debts, Ukraine will need about USD 17.4 billion of foreign financing in 2014. Out of these, about USD 9 billion - money, which we have to pay to our partners from Russia, USD 3.5 billion - to the International Monetary Fund and USD 2.1 billion - payments on Eurobonds," Burakovsky said.
According to the expert, irrespective of the source of financing, the credits for Ukraine will be accompanied by very tough economic, and possibly political conditions on the part of creditors.
Executive Director of the International Bleyzer Foundation Oleh Ustenko agrees with him. According to him, since the cost of borrowings for Ukraine on foreign markets is extremely high now, real sources of financing may be either the IMF or Russia.
"As concerns receiving money from China, Japan or Brazil, these scenarios are unlikely. Those countries have no experience of such financing, they finance only investment projects or through related credits," Ustenko explained.
According to him, for Ukraine it is better to get money, which comes from the International Monetary Fund. "Money has no smell. Smell of money from the IMF for many creditors and investors, working in Ukraine, on developing markets, in the European Union economies, smell of this money is much better against smell of any other money."
At the same time, Ustenko expects that Russia will develop an active marketing campaign in order to show advantages of joining the Customs Union, and will be ready to give Ukraine a credit at a preferential rate.
According to President of the Center for Economic Development Oleksandr Paskhaver, conditions, on which Russia or China may offer money to Ukraine, will be burdened with additional political requirements.
"Most likely, in relation to Russia there will be informal conditions, but they may be the main. And those conditions, from the economic viewpoint, may be more expensive than the credit itself," Paskhaver stressed.