Ukraine must act quickly to correct imbalances in its economy, which threaten to widen the budget and current-account deficits beyond the government’s control, the World Bank said.
Ukraine’s hryvnia may weaken 6 percent by the end of the year against the dollar as falling metal prices widen the country’s current-account deficit, Renaissance Capital said.
The hryvnia may weaken 0.6 percent against the dollar by the end of the year as increasing purchases of imported goods boost demand for foreign currency, Renaissance Capital said.
Belarus will become the first country outside Russia to sell bonds denominated in rubles as the government seeks to attract investors from its biggest trading partner and borrow at cheaper rates than in U.S. dollars.
Ukraine’s credit ratings were raised by Standard & Poor’s after the International Monetary Fund approved a new $15.2 billion loan program for the country.
The International Monetary Fund approved a 2 ½-year, $15.2 billion loan program for Ukraine, which agreed to trim its budget deficit and raised natural gas prices to qualify for the funds.
Ukraine may not suffer to the extent it did when metals prices plunged during the global financial crisis three years ago, investment bank Renaissance Capital said.
"Increasing demand for foreign currency in the retail market is a key risk."
- Anastasia Golovach on Oct 27, 2010