The bank FUIB in Mariupol. Photo EPA / Maxim Shipenkov
Due to the political turmoil in Ukraine is a lot worse with the economy in the country than in February thought. That makes credit rating agency Fitch in a report, which the assessment of the creditworthiness of Ukraine decreases by one step from B to CCC.
The report attributes the rating :
“Although the government area of the rebels has conquered, the conflict may persist or worsen, what the economic recovery and the banks may harm.”
Fitch expects the Ukrainian economy will shrink by at least 6.5 percent this year and that will show. country next year and in 2016, no growth This is partly because exports to Russia in the first half of this year has fallen. 24 percent Because Russia’s Gazprom gas supplies to Ukraine has put stop, besides.
threatens a shortage of fuelThe rating agency also notes that the deteriorating financial position of the government. The budget deficit this year is expected to reach 10 percent of gross domestic product (GDP), while the national debt will be this year. Exceed 65 percent of GDP That means it is deteriorating faster than the IMF foresaw when the emergency loans to Ukraine promised. It is the national currency devalued by 37 percent against the dollar.
Ukraine has 1.5 percent of GDP set aside to support banks, but Fitch believes that this amount should be higher. The lower valuation now indicates that investments in government loans from the country risky and Ukraine only under favorable circumstances loans can repay
- Read more about:.
- GDP
- Fitch
- credit rating
- credit
- Ukraine
- debt
No comments:
Post a Comment