Ukraine's "unrealistic"
budget for 2016 is very unlikely to help Kiev avoid bankruptcy, according to
the German newspaper Deutsche Wirtschafts Nachrichten.
Ukraine has
adopted an "unrealistic" budget for next year with a
deficit totaling 3.7 percent of its GDP. The Ukrainian government hopes
that the measure will help it to avoid bankruptcy, the German
newspaper Deutsche Wirtschafts Nachrichten reported.
The newspaper said that by approving the budget,
Kiev has formally met the International Monetary Fund's condition
for handing over the next tranche to Ukraine.
However, the money is unlikely to improve the
situation in the country, because, as a rule, it usually lands
in the pockets of corrupt officials, according to Deutsche
Wirtschafts Nachrichten.
The newspaper went on to say that against the
background of the catastrophic situation in the Ukrainian
economy, it will be impossible
to implement the budget, which, however, may allow Kiev to avoid
bankruptcy and at least formally meet a condition of the IMF
to provide Ukraine with the next credit tranche, worth 1.7 billion
dollars.
Years of mismanagement and corruption as well
as the conflict in the country's east have put Ukraine on the
brink of bankruptcy, Deutsche Wirtschafts Nachrichten said.
Earlier this year, Kiev received almost 10 billion
dollars from the IMF and other international investors. The goal was to improve the
financial situation in the country, but little has changed
since then and the level of corruption shows no sign
of decreasing, the newspaper said.
In Ukraine, such loans are typically managed
by regional networks, the economic model of which stipulates the
delivery of foreign money to their own financial channels, Deutsche
Wirtschafts Nachrichten concluded.
Source: Sputnik News 27-12-2015
