Groysman: IMF loan is the only option to avoid default

Groysman: IMF loan is the only option to avoid default

Ukrinform
Prime Minister Volodymyr Groysman has said that Ukraine cannot avoid default without a loan from the International Monetary Fund and therefore an increase in the natural gas price for the population is needed to fulfill its obligations to the IMF.

“We had only two options: either the minimum increase, which we agreed on, or default, galloping inflation, depreciation of all savings. We chose an option that could be compensated for by subsidies so that the increase [in the gas price] does not affect unprotected people," Groysman wrote on Twitter.

According to him, the IMF loan is needed "not to make new debts, but to pay off old ones. After all, every year we spend $5 billion on their service."

Groysman added that every family that cannot fully pay utility bills will receive a subsidy.

As Ukrinform reported, the Cabinet of Ministers approved the increase in the natural gas price for the population by 23.5% from November 1.

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