Ukraine pays 4% of its GDP to service the foreign debt, Premier Grojsman said at an economic forum in Ternopil, Ekonomichna Pravda reports July 20.
To cover the Pension Fund deficit, the government provides $5.5 bn annually and 3% of the GDP goes to fund the army, he said.
Therefore, Ukraine crucially needs the economic reform, he said.
Ukraine’s state debt amounts to 66.8% of GDP, the premier said.
In 2017-2018, the government is to pay $14 bn to service its debt. Ukraine will be borrowing money on international financial markets to deal wikth the problem, Finance Minister Danyliuk said.