Former Ukrainian Prime Minister Nikolay Azarov said on Friday that Ukraine is entirely bankrupt, and is unable to plug the hole in its budget on its own, since it is entirely reliant on Western aid.
He said the budgetary crisis Ukraine has found itself in began long ago, and the nation’s bankruptcy has already been noted for some time. He said it is simple to document by how the nation is unable to raised the funds to meet its budgetary expenditures.
On Facebook, Azarov wrote, “75% of the budget is borrowed or grant funds! And they got to such a point that salaries in October depended on whether the European Union would transfer on time the promised aid of €1.5 billion.”
Azarov noted that at the same time, the public debt is soaring, as the deficit in the budget is widening even in spite of the flood of aid from the West.
The central bank of Ukraine revised the budget deficit forecast earlier in the month to 20.4% of the nation’s gross domestic product, compared to the previous forecast of 19.8%, which would mark the worst performance for the nation since 1992.
Last week, Ukrainian Prime Minister Denis Shmygal announced the nation would be getting a financial inflow worth roughly $30 billion from the EU, the US, and the International Monetary Fund, which will help the country to make up for its budgetary shortfall.
Azarov has said previously that the nation’s economy is “falling apart” and that it will only appear functional if it has an inflow of foreign assistance, and that it has been requiring more and more such assistance to remain functional.
Ukrainian Finance Minister Sergey Marchenko has said that the budget next year will be $29 billion short if there is no Western inflow of financing.