Google+ Followers

Wednesday, 5 February 2014

Ukraine Aid Limbo Deepens Reserves Squeeze: East Europe Credit - Bloomberg

Ukraine Aid Limbo Deepens Reserves Squeeze: East Europe Credit - Bloomberg:



"Ukraine is running short of time to end a political stalemate and win more international aid from either Russia or the West as foreign-currency reserves shrink and hryvnia losses accelerate.



Reserves probably contracted to $18.8 billion in January from $20.4 billion a month earlier, according to the median estimate of seven analysts surveyed by Bloomberg before the central bank publishes the data by Feb. 10. That would tie November for the lowest level since 2006, before Russia pledged $15 billion in emergency loans a month later.



The dwindling war chest and collapsing hryvnia, which weakened to a more than a four-year low today, are a risk to Ukraine’s financial stability, according to Fitch Ratings. They also threaten to intensify a selloff that has made the nation’s bonds the worst-performing in Europe this year, even after a rebound this week amid speculation an aid package may be forthcoming from the European Union and the U.S."



'via Blog this'