According to Summers, Ukraine should be prepared for the possibility to declare default and refuse to perform its obligations, but the international community should make clear that it will continue to support Kyiv, Joinfo.ua reports referring to Financial Times.
The former head of the Ministry of Finance says that in the context of these steps, the creditors will have no choice but to accept the economic reality of the situation. Summers claims that the Kyiv authorities now have "the most reform-minded economic team since independence in 1991".
In addition, he says that the amount of Ukraine's debt "is not nearly large enough for a reduction to pose a threat to the world financial system." However, despite this, the creditors "are playing hardball and refusing any write-offs." In this regard, Summers described the behavior of the holders of Ukraine's debt, and among them – managers of leading U.S. funds, as "irresponsible" and their position as "recalcitrant."
It should be recalled that investors again made predictions about new default in Ukraine. According to them, the country will not have time to fulfill its obligations regarding debt restructuring by the designated deadline in June.