"UKRAINE’S problems are not just political. In recent weeks its economy has taken a hammering. Until mid-January its currency, the hryvnia, was fixed at 8:1 with the dollar; it now trades at about 10:1. The government has recently issued short-term debt at interest rates as high as 15%; this year its bonds have done about as badly as Venezuela's. Many analysts are worried that the country will soon default on its debt.
The economic turmoil reflects recent political instability. But Ukraine’s economic problems were long in the making. Dodgy economic policy, distaste for reform and endemic corruption have brought the country to its knees.
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