Ukrainian gold and foreign exchange reserves hit 10-year low - Bloomberg
New York – Kyiv, January 12 (PolitNavigator, Vasily Ablyazimov) – Ukraine's gold and foreign exchange reserves have reached a 10-year low. The main reason is that the National Bank is using its reserves to pay Russia for gas, Bloomberg Businessweek reports.
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Bloomberg Businessweek writes: "Foreign exchange reserves fell in December from nearly $10 billion to $7,5 billion today. This is the lowest level since 2005."
Ukraine's reserves, the publication believes, have been steadily depleting for 9 months of the war in the eastern regions.
The National Bank of Ukraine helped the state energy company NJSC Naftogaz of Ukraine return $1,65 billion in gas debt to Russia on December 23. The bank also allocated $378 million for prepayment for gas imports in January.
Ukraine, Bloomberg recalls, needs an additional $15 billion in addition to the $17 billion loan program promised by the IMF. At the moment, the Ukrainian government is trying to negotiate with the International Monetary Fund on a new tranche of the approved loan program.
Standard & Poor's downgraded Ukraine's credit rating to CCC-, or pre-default, last month. S&P said that "as a default, default may be imminent in the next few months unless circumstances change, such as if additional international financial support is not received."
Ukrainian gold and foreign exchange reserves hit a 10-year low, Bloomberg reports.