Avoiding Default: an Urgent Need for Ukraine, by Denys Kostrzhevskyi

KYIV, UKRAINE, July 5, 2024 /EINPresswire.com/ -- Ukraine is now in a critical economic situation, resulting from the ongoing war and significant external debt obligations. The government has less than a month to reach agreements with creditors to avoid default by August 1st. If no consensus is reached, the country could face severe economic consequences that would seriously affect its stability.

“Failure to reach agreements can lead to an increase in the debt burden and significant financial losses. It can also exacerbate inflation, reduce investment attractiveness, and cause social upheaval. The default will significantly complicate the recovery of the economy after the war and may lead to a loss of confidence of international partners,” Denys Kostrzhevskyi, Chairman of the Board of Directors of Kyiv International Airport, said.

The government needs to focus on negotiations with international creditors, seeking compromise solutions for debt restructuring and securing financial support. This requires active diplomatic effort and a professional approach to solving financial issues.

“It is also critical to work on structural reforms, strengthening anti-corruption measures, and stimulating economic growth through investments in key sectors such as transport infrastructure, agro-industry, and IT,” Mr Kostrzhevskyi adds.

However, according to him, to ensure the long-term development of the economy, its immediate and maximum denationalisation is needed. After all, out of more than 3,100 state-owned enterprises, only 15% are profitable, the rest are maintained at the expense of taxpayers.

Denationalisation will attract professional managers and investors who are able to manage resources more effectively and increase the productivity of enterprises.

“Such an economic structure, multiplied by total corruption, will never be understood by creditors and does not allow us to hope for its revival and for repayment of debts. Denationalisation will help reduce the burden on the budget, attract foreign investment, and increase the efficiency of enterprise management,” Denys Kostrzhevskyi believes.

In this context, Ukraine should actively work with its international partners, employing all opportunities to protect its national interests, strengthen its defence capabilities, and develop stable and mutually beneficial relations.

Editor
Center of Corporate Relations Research (CCRR)
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