Former Deputy Minister of Finance of Ukraine Igor Umansky believes that last year’s restructuring of public debt was not a successful project.
About this Uman said in an interview with the «Economic truth».
He said that he wrote a resignation due to «too different views with the Minister of Finance Natalia Jaresko on the financial and economic processes, problems and ways of their solution».
«For example, I do not believe the restructuring of public debt of Ukraine successful project. I am deeply convinced that within a few years — even if this Parliament will complete the full term of the new Parliament and the new government will face problems in servicing debt,» said Umansky.
According to him, the Minister of Finance, who will be in the Cabinet after 2020, will face great difficulty when working with VRI (Value Recovery Instrument, a tool of the renewable value — securities issued by Ukraine, in return for the agreement of creditors to write off part of the debt — ed.).
«What’s the problem? This tool is tied to GDP growth, and with growth of over 3% per year, Ukraine will pay the portion of that growth. The growth of the GDP, not even from the state budget! Whether real GDP growth above 3%? Since mid-2012, Ukraine’s economy is steadily declining. Due to the low base of comparison the growth prospects we have is enormous,» said the former Deputy Minister.
Thus Umansky said that the restructuring learned from external sources.
«This is one reason care is the most important issues, in my opinion, should be discussed within the team prior to their «coming out» for public discussion. Otherwise it is not. When the most important not only for the Ministry but also the country’s decisions and documents «are born» not in the Ministry, for me it’s not acceptable,» said former Deputy Minister.
Umansky believes that it is reasonable to set the «ceiling» of the amounts payable by VRI-tools in the size of the haircut.
«Then it would certainly be good enough. Despite the increase in rates maintenance and minor restructuring of the principal», he said.
«However, we have created a «time bomb». The only way those of Finance Ministers, which will work after 2020, is to find a way of restructuring of these instruments, in order to avoid default on them», — said Umansky.
As reported, the law on restructuring of credits in foreign currency, the Verkhovna Rada adopted on 2 July, after which a number of MPs called on the President to apply the veto.
In turn, the national Bank of Ukraine July 3, stated that the adoption of this law will inflict devastating damage to the financial and banking system of Ukraine, will endanger the well-being of all citizens.
«If all loans granted to natural persons-residents in foreign currency, to convert into hryvnia at the exchange rate 5,05 UAH/1$, the banking system will suffer losses in the amount of about 100 billion UAH», – noted on the website of the Central Bank.
Speaker Volodymyr Groysman long signed the law, and did it once in the Parliament was registered a government bill on restructuring foreign currency mortgage loans with additional benefits for participants of the ATO. In particular, the Cabinet proposes to allow individuals to restructure loans for the purchase of single family housing with the write-off of 25-75% of the volume of the mortgage, and for members of ATU –80-100% mortgages, the balance of which does not exceed about 2.5 million UAH on 1 January 2015 and for which no outstanding debt as of 1 January 2014 or she was repaid. These loans constitute about 20 billion USD, or about 40% of the total mortgage, and the proposed restructuring mechanism was supported by 19 of the largest Ukrainian banks, which account for 75% of banking system assets.
Former Deputy Jaresko on the restructuring of the national debt: it’s a time bomb 25.02.2016