Ukraine crisis: Hope for IMF fund aid

Ukraine’s economy received hard blows after the post war against pro-Russian rebels and today badly requires intensive international foreign aid.

The Ukrainian hryvnia collapsed by 33% on Thursday while putting much pressure for a bailout and boosted optimism among bond investors.

However,this effort has been highly admired by the International Monetary Fund whose policymakers are currently in Kiev to discuss an increase of a $17 billion bailout from 2014.

The country is probably all set to finally receive more funds from the IMF and other lenders.

A meeting occurred between the German Chancellor, Angela Merkel , the French President ,Francois Hollande, and the Ukrianian President, Petro Poroshenko to deal with the 10-month conflict.

Moreover, Merkel and Hollande also presented another cease-fire plan to the one drawn by Russian President Vladimir Putin.

As Ukraine requires an additional of $15billion funding, the government aims to discuss a restructuring plan with its sovereign bonds holders after the finalization of the new IMF loan.

The IMF highly approves the central bank’s latest decisions of fragmenting the hryvnia’s indicative rate and the cancellation of daily currency auctions to avoid ‘multiple exchange rates’ in interbanks and in official banks.

Source: Bloomberg
Priscilla Camryn By: Priscilla Camryn