Credit won’t work: Why Ukraine’s state debt must be cancelled
On April 10 the World Bank updated its GDP prognosis for Ukraine to state that the Russian invasion was to shrink Ukraine’s economy by 45% in 2022 alone. But that is a very optimistic prognosis. As by March 29th, the country’s direct one-time losses due to the invasion already exceed $1 trillion. Even prior to the invasions Ukraine already was one of the poorest and most indebted countries in Europe. Current budgetary expenditure on arms, humanitarian needs, and medical needs of the wounded have grown exponentially. That is why the IMF has already set up a fund to allow other countries steer more resources to Ukraine’s accounts following talks with Ukraine’s Ministry of Finance.