Sunday 23 June 2013

How Ukraine Can Survive 2013 Without the IMF | Opinion | The Moscow Times

"The global bond market rescued Ukraine from budget revenue shortages during the first half of this year allowing it to meet its foreign debt obligations. The Ukrainian government issued successfully a number of sovereign and domestic bonds that were fully subscribed. While this financial influx helped government cover state budget gaps without an IMF program, Ukraine's luck so far does not guarantee a repeat in the near-term.

Ukrainian authorities will concurrently move along two paths: continue talks with the IMF in hopes of a new stand-by agreement and simultaneously search for alternative financial instruments to meet debt obligations. Among them are domestic investors, Russian banks and Chinese loans. These alternatives may be financially less attractive than IMF loans; however, they are much cheaper politically than the potential public fall out from unpopular reforms."

'via Blog this'

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