Ukraine may never recover all of the billions of dollars it has spent to co-host the European Championship and the outlay might complicate its chances of servicing its debt, reports Natalia Zinets.
The mathematics of financing Euro 2012, being co-hosted with Poland, are crucial for a country that faces $11.9 billion in debt obligations this year. Staging Euro 2012 -- absorbing a total of $13.4 billion including $6.6 billion from state coffers -- is unlikely to make the former Soviet republic any more inviting for foreign investment, analysts say.
"In effect, the (state) budget took on the additional debt burden and taxpayers for many years to come will be paying for the Euro soccer holiday," said Erik Nayman at brokerage Capital Times.
Analysts at analytical group Da Vinci AG forecast financial losses suffered from hosting the championship could total between $6 billion and $8 billion. "Ukraine will not receive any financial income or significant economic impact from co-hosting the Euro 2012 championship," Da Vinci AG's Andriy Kolpakov said.