The West predicts further economic decline for Ukraine
Kyiv, September 24 (PolitNavigator, Yuriy Kovalchuk) – Ukrainian leaders tried to calm financial markets by promising actions aimed at strengthening the national currency, which has reached record lows due to the conflict in the east and the dire state of the economy, reports the French agency Agence France-Press "
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Ukrainian President Petro Poroshenko held talks with leading members of the cabinet, central bank administrations and the heads of a number of large banks to try to stabilize the situation. Prime Minister Arseniy Yatsenyuk blamed the fall of the hryvnia on “alarmists” and “speculators”, through whose efforts the hryvnia has fallen by more than 40% this year, despite the central bank’s interventions, writes AFP.
The hryvnia is being drowned by a pro-Russian insurgency in the industrial east, which has significantly worsened the deep economic crisis in the former Soviet republic. Ukraine is currently awaiting an additional $27 billion from various lenders, including the IMF and the EU. However, the European Bank for Reconstruction and Development predicts that Ukraine's economy will fall by 9% this year, the agency reports.
Finance Minister Alexander Shlapak warned that if the hryvnia falls below 15 UAH. per dollar, this could threaten the banking sector and the country's financial system. At the same time, Shlapak assures that the government can return the exchange rate to 13 UAH. for a dollar.
The West predicts further economic decline for Ukraine.