RPT-Fitch: Russian lending to Ukraine offers short-term relief | Reuters:
"Fitch Ratings says in a new report that Russia's provision of external financing and cheaper gas supplies to Ukraine significantly reduces the risk of a sovereign external liquidity crisis in 2014. However, it also allows Ukraine to continue to run unsustainable fiscal and external deficits, building up public and external debt, and creates a hump in debt repayments in 2016.
Ukraine received the first USD3bn tranche of a promised USD15bn in Russian financing on 24 December 2013 and plans to place a further USD12bn in Eurobonds by end-2014. The schedule and amount of borrowing is still being discussed. If realised, this would be more than sufficient to refinance USD6.7bn in sovereign external debt repayments in 2014, although the government will still need to borrow elsewhere to finance a widening fiscal deficit of up to 7% of GDP."
'via Blog this'
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