The head of the parliamentary committee on finance, taxation and customs policy, Danylo Hetmantsev, proposes exchanging value recovery instruments (VRI) issued during the restructuring of Ukraine’s external debt in 2015 for eurobonds.
“What needs to be done within the framework of the debt policy in 2021: negotiations with the owners of infamous Yaresko GDP warrants about their exchange for standard eurobonds,” he wrote in a column in the newspaper Segodnya.
According to him, the high cost of Ukraine’s public debt is the main obstacle to development, and the problem of public debt worsened in 2014-2017.
“Our task in the medium term is to ease the debt burden and gradually move from IMF lending to standard methods of raising funds in the domestic and international markets,” the head of the committee said.
He explained that for this it is necessary to raise credit ratings in 2021 by one notch – to the level of “B+” by Fitch and S&P, return to the primary surplus of the state budget in 2022 and stabilize the level of public debt to GDP, keeping it at the level of 2021 plus/minus one percentage point at the 2020 level.
Another task for 2021 is Ukraine’s entry into the Asian Infrastructure Investment Bank and the development of alternative sources of financing the national debt.
