18:06 21.08.2018

Ukraine will hold negotiations with the IMF on possibility of writing off debts - Fuks

3 min read

Ukraine should negotiate with the International Monetary Fund on the possibility of writing off at least part of its debts.

This opinion was expressed by Ukrainian businessman and philanthropist Pavel Fuks on his Telegram microblog.

"I believe that Ukraine should negotiate with the IMF on the possibility of writing off at least part of our debts, of course, under the specific obligations of carrying out reforms that Ukraine is already implementing. Our country has shown to international partners that it is capable of changing and is a reliable partner. Writing off even a part of the debts will benefit not only Ukraine, but also our partners and potential investors, "the businessman said.

As an example, he cited the situation in Poland, which managed to negotiate with western creditors to write off 50% of its debts.

"Studying the information that Ukraine's national debt is $ 76.3 billion as of June 2018, I recall Poland's experience, during which Western creditors wrote off 50% of the debts. This allowed Poland to attract new loans and ensure significant economic growth," Fuks said.

The businessman also recalled Poland's ex Deputy Prime Minister and Finance Minister Grzegorz Kołodko.

"In September 1994, I signed an agreement with the London Club (the organization of private lenders and private banks) and they wrote off 50% of our debts to private banks. Without writing off these debts there would be no success story, but it was based on very harsh conditions agreed with IMF and creditor countries, starting with the US, ending with France and Germany. W followed these tips and conditions, sometimes they could be discussed, but the partners had the strength to insist and say: 'Okay, we will reduce the next part of your debt if you spend this and this reform and so on.' Undoubtedly, the West used this process of writing off debts from Poland as an instrument of pressure to quickly open up our economy in order to speed up the privatization and denationalization of the banking sector. And today I say the same thing I said at the time - it's not was only a humanitarian gesture on the part of the West It was the best investment they made because it helped turn Poland into an open, prosperous, market economy that created a lot of opportunities for Western capital to invest in the country to obtain profits by both parties, " Fuks said, quoting former Polish officials.

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