Ukraine's envoy to IMF outlines negative economic consequences in case of default.

The default will trigger devaluation, inflation, bankruptcy, empty stores, raids on banks, social protests, street violence, looting, and international isolation.

REUTERS

REUTERS

Alternate Executive Director at the International Monetary Fund for Ukraine Vladyslav Rashkovan has outlined negative economic consequences for Ukraine in case of the country's default.

Read alsoEBA: Ukrainian businesses record up to 50% of revenue losses amid coronavirus quarantine

The official says there is a group of people in Ukraine who advocate an idea of default, noting that the country should not repay the debts taken before, but should allocate the funds for assistance to the poor and vulnerable groups of the population.

"I'll just cite the words that mean the same as the word 'default': devaluation, inflation, bankruptcy, empty stores, raids on banks, social protests, street violence, looting, and international isolation," he wrote on Facebook on March 25.

Rashkovan also recommended that politicians, including parliamentarians, look at "vivid pictures from Argentina, Ecuador, Russia and some other countries that are associated with the word 'default.'"

"Parliamentarians and politicians, do you really want such a future for Ukraine?" he added, having published the relevant photos.

As UNIAN reported earlier, Oleksandr Pysaruk, the Chairman of Board at Kyiv-based Raiffeisen Bank Aval, one of Ukraine's largest bank with foreign capital in terms of assets, had said that the announcement of default over the coronavirus quarantine in Ukraine and the outbreak of the global crisis would be the worst-case scenario for the country. This will lead to the cessation of foreign investment for years along with hyperinflation.

Ukraine's leading economists and research centers insist it is inadmissible to declare default in Ukraine since this may cause its international isolation.

The World Health Organization (WHO) announced a coronavirus pandemic on March 11.

The panic in global markets caused by the rapid spread of the coronavirus has triggered the weakening of local currencies in developing countries and a decline in stock market quotations.

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