Strategy of state debt management approved by Cabinet will allow to cut borrowings, says Regions Party

The volume of planned government borrowings stipulated in the government medium-term strategy of state debt management for 2013-2015 is not critical for Ukraine's GDP, however its level is to be constantly controlled and we should achieve its reduction, deputy chairman of the Regions Party faction Anatoliy Kinakh considers.

According to him, the positive moment is that the strategy of state debt management approved by the government includes Ukraine's intention by 2015 to reduce the volume of borrowings to UAH 125.6 billion. Although the state debt ceiling in relation to Ukraine's GDP (about 30%) is not critical, this burden on the national budget needs to be reduced, the politician said.

"The solution to this problem depends entirely on the efficiently functioning economy. Ukraine has a strong industrial, human, intellectual and natural potential, the implementation of which could provide the country with much more favorable financial resources than those offered by international donors," the press service of the politician said citing Kinakh.

He also noted that the scale of work to be performed in 2013 is extremely large. It is necessary, first of all, to accelerate the implementation of structural reforms, energy saving measures, support for small and medium businesses, the gradual improvement of the situation with bank lending to the real sector of the economy.

"Only the effectively functioning economy will allow to repay the state debt accumulated over many years, create conditions for the stable development of the state, improving the well-being and quality of life of people," the politician summarized.