Oleksandr Holub, a member of the Communist faction in Ukraine's parliament, told the regional TV channel Vynnychyna that the default, if it happened, would be incomparable with the crisis experienced by the republic in the early 1990s, the Ukrainian news agency UNIAN reported.
"This is because state control has been lost in the country and most state institutions, which could alleviate the effects of the crisis, have been destroyed," Holub said.
The Communist MP said the situation in Ukraine would develop according to the negative scenario.
"This is because there are no financial, economic or social grounds to say that we can stop the crisis. I believe the situation will be much worse than that after the collapse of the Soviet Union," Holub said.
Ukraine's economy has been hard hit by the global credit crunch, along with the falling price of steel, a key national export. The financial crisis has seen Ukrainians rush to withdraw their savings as banks teetered on the edge of bankruptcy.
The International Monetary Fund (IMF) approved on November 5 a $16.43-billion emergency loan to Ukraine. The country has already received the first tranche of $4.5 billion and a decision on the second tranche could be adopted in January.
On top of that, Kiev was embroiled in a bitter dispute with Moscow over debt and gas prices for Ukraine in 2009, which resulted in the suspension of deliveries to Ukraine on January 1.
Gas supplies to Ukraine from Russia resumed on Tuesday following a deal reached between Gazprom and Naftogaz. However, experts estimate that the gas row with Russia could have cost Ukraine billions of U.S. dollars.