Other countries to pay Ukraine’s debts to WB in case of its default — executive director
"The World Bank’s management understands all risks related to Kiev’s possible bankruptcy, which is why it is not ready to risk its own stability and top credit rating," Roman Marshavin said
WASHINGTON, July 22. /TASS/. Experts of the World Bank (WB) openly warn about Ukraine’s financial insolvency and its corruption issues, with other countries to be forced to pay its debts to this financial organization in the event of Kiev’s default, Executive Director of the World Bank representing Russia Roman Marshavin told TASS in an interview on the occasion of the 80th anniversary of the Bretton Woods Conference.
"Through the World Bank’s trust funds alone donors have allocated over $21 bln to Ukraine, with another almost $8 bln granted against donors’ sovereign guarantees, which means that in the event of Ukraine’s default such countries as the UK and Japan will be forced to fully pay its debt to the bank, as well as interest on it," he said.
"In other words, the World Bank’s management understands all risks related to Kiev’s possible bankruptcy, which is why it is not ready to risk its own stability and top credit rating. It is useful to compare the scale of Ukraine’s financing with programs for the bank’s main borrowers. In particular, in 2022-2024 financial years Indonesia received the IBRD’s loans worth over $10.6 bln, India - worth almost $12 bln, China - worth more than $3.2 bln," Marshavin said.
"In its publications the bank’s experts openly warn about Ukraine’s financial insolvency and corruption problems," he said, adding that "the problems with restructuring of its debt to private creditors have already become the first sign." "The World Bank hopes that the monetary authorities of the European Union and the US will be able to compensate for affected commercial banks’ losses to prevent the financial crisis from spreading and going out of control," Executive Director said.
The Russian directorate traditionally votes ‘against’ as Ukrainian projects are considered in the World Bank, though its voice is insufficient to block them.
Deputy spokesperson for the Russian Foreign Ministry Andrey Nastasyin said on July 3 that the possibility of Ukraine’s default remained high, adding that it would reach 80% in 2026.