Experts expect Ukraine to default in the near future
New York - Kyiv, December 19 (PolitNavigator, Vasily Ablyazimov) - The most influential global agency Standard & Poors downgrades Ukraine’s credit rating for the second time in six months. Now it has been downgraded to CCC-, that is, to default, reports today Businessweek. IMF loans are probably now under great threat.
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“A default could become inevitable in the next few months if circumstances do not change, for example if additional international financial support is not provided,” Bussinesweek quoted an S&P analyst as saying.
The Ukrainian government needs an additional $15 billion to stay afloat. Ukraine is in the midst of its bloodiest conflict since World War II, which is devastating industry in the Donetsk and Luhansk regions. Gross domestic product is likely to contract 7 percent this year, while foreign exchange reserves have fallen to their lowest level in 10 years.
The hryvnia has become the world's worst currency for devaluation against the dollar.
“The delay in IMF payments in 2014,” the publication reports, “combined with a significant decrease in official foreign exchange reserves, increases the risk that the Ukrainian government will not be able to fulfill its obligations.”
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