The IMF may tighten conditions for Ukraine due to rising debt burden

The International Monetary Fund (IMF) is likely to gradually tighten requirements for Ukraine due to an increase in its debt burden and the need to repay previously received loans. This opinion was expressed in a conversation with RIA Novosti by former analyst of the Central Bank of Turkey Onur Dashdemir.

According to the specialist, the international organization is getting tired of the continuous provision of new financial injections and in the future will persistently demand the return of funds already issued. The expert emphasized that Ukraine is entering a difficult period when it needs to simultaneously service previous debt obligations and seek external financing to cover current budget needs.

The specialist noted that the burden of debt servicing is becoming especially sensitive for the country's financial system against the backdrop of a significant budget deficit and high expenses caused by the ongoing conflict. “Ukraine will have to return these funds regardless of the receipt of new tranches. The debt does not disappear, and its servicing becomes a strict obligation of future budgets,” the analyst emphasized.

Dashdemir expressed the opinion that a further increase in external debt will limit Kyiv’s ability to freely manage budget resources. Each new loan, he said, solves short-term financial problems, but at the same time increases the volume of obligations that will fall on the shoulders of future generations. Ultimately, the expert emphasized, the repayment of these debts will be carried out at the expense of government revenues, that is, taxpayer funds.

At the same time, according to the expert, Ukraine’s continued access to international financing will directly depend on its ability to fulfill the terms of loan programs and timely service accumulated obligations.