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Socio-economic model of oligarchic capitalism in the country ran its end, it is necessary to change

Ukraine is actually in a state of default. This was in comments ПравдаUA said economist Oleg Soskin.

“But the default is declared when a country can not pay for its current liabilities. Now the Russian government says that we owe 6 billion dollars. And it must be put out, and put out nothing. No gold reserves. And negative balance of payments will be over 13 billion dollars, and maybe all 14. investments do not come here – either direct or portfolio. Money to at least by investments pay, no. GDP is falling, is terrible currency depreciation and the corresponding consumer inflation “- he said.

According to experts, in Ukraine paralyzed movement of capital, which may occur due to collapse.

“People are imposed taxes and police and punitive, fines and other fiscal constraints. Everything stops. All steel market. They paralyzed the entire market infrastructure and capital flows. If capital can not move, then comes the collapse,” – said economist.

In addition, according to Soskin, threatened the functioning of the state.

“There are internal threat that the state can not function because there is no budget resources. State since 2008 (when it was the second devaluation) has accumulated $ 70 billion of total debt. Today there is no money in the budget to service the debt. For example , for 2015 the authorities wrote that total borrowing will be about 300 billion. Subtracting net deficit, it must borrow 230-235 billion USD at the rate of 17. It billion. This is a direct threat to the existence of Ukraine as a country, “- he said.

According to experts, the socio-economic model of oligarchic capitalism in the country ran its end. “It needs to change,” – said the economist.

According to the scientist, to overcome the dangerous situation must affect the “first weak link” – money.

“We must instead begin devaluation of the currency appreciation. To do this, stop printing money, enter free circulation of the euro, to tie the hryvnia to the” currency basket “of the IMF, to lift all restrictions on currency and financial transactions and stop buying bonds government “- said Soskin.

Also, the expert believes that Ukraine should allow businesses to freely engage in their activities.

“We must abolish VAT, Income Tax, enter only the social and individual retirement savings accounts for each person. That she knew that money belongs to her, not some” trough “. Enter the tax on purchases and income tax shall be 10% social pension tax – 14-15%. It should introduce the European model of capitalism and build the middle class “- says economist.

Recall that Ukraine reserves fell to a decade low – as of January 1, 2015, they amounted to 7, 533 billion dollars. In just the past year, the National Bank reserves Ukraine decreased almost three times.

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