Ukraine asks for IMF bailouts along with Hungary and Belarus

The National Bank of Ukraine (Ukrainian: Національний банк України) is the central bank of Ukraine.
Photo courtesy of Flickr
Ukraine's currency, the hryvnia, has lost a fifth of its value in the last eight days. It now leads a host of former Soviet-controlled states in Eastern Europe that, severely exposed by the new mood of fiscal rectitude on the financial markets, have turned to the IMF to stave off collapse. This week it hopes to enter the equivalent of receivership, but only if it can meet the terms of a $14 billion International Monetary Fund (IMF) bail-out.

The Eastern bloc states, Hungary and Belarus, have joined Ukraine in making formal applications for IMF bailouts but others, including the Baltic States, all members of the EU, have entered secret consultations for international help.

With a range of continuing disputes with the Kremlin during an intractable domestic political dispute, economic collapse has rendered Ukraine vulnerable to a resurgence of Russian influence. Last week a Russian consortium was seen as a leading contender to take over the failed Ukrainian bank, Prominvest.

Ukraine's pro-Moscow opposition has spent months warning that the government had steered disastrously away from Russia, a path that jeopardised its economy. Last week Serhyi Taruta, the country's leading steel magnate, compounded its crisis by warning of mass lay-offs in the vital industry.

"The main effect on Latvia has been a dramatic fall in economic growth, from 12 per cent when we joined the EU to 1 per cent now," said MEP Rihard Piks, who was the Latvian foreign minister when the country joined the EU in 2004.

Related Posts :

1. IMF loans US $2 bln to Iceland
2. Four Currency Crises: Hungary, Iceland, Pakistan, and Argentina
3. Swiss banking collapse is going to be one biggest domino to fall
4. Iceland receives $6 bln rescue package
5. Will Hungary be the next Iceland?

Sources :

Telegraph.co.uk: Ukraine suffers from the economic crisis along with the rest of Eastern Europe, October 25, 2008

Please Note!
This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.