Premier Azarov says no threat of default in Ukraine

KYIV, March 1 /UKRINFORM/. There are no economic grounds for a threat of default in Ukraine, Ukrainian Prime Minister Mykola Azarov said during a lecture, entitled "How to Ensure the Sustainable Development of Ukraine," which he delivered for the students of higher educational establishments in Zakarpattia region.

"There's no threat of default, and even a hint of default in our country," the government's press service cited him as saying in Uzhgorod on Thursday.

The prime minister said that there was also no reason for the devaluation of the exchange rate of the national currency. "There is no reason for the devaluation of the hryvnia exchange rate. We have enough foreign currency reserves, and demand for foreign currency supply is balanced with supply. In principle, we have a normal ratio of the balance of payments. That is, we bring more foreign currency to our country," Azarov said. He noted that these factors were offset by a negative foreign trade balance.

Azarov noted that one of the main factors forming the negative trade balance in Ukraine was an extremely high price of gas. In this context, the head of government said that a reduction in the price of Russian gas to an economically justified level would help Ukraine reach a foreign trade surplus.

"Our negative balance is based, first and foremost, on the high price of gas. If the price of gas is two times lower, we will have a positive balance of payments and a positive trade balance," the head of government said.