Interaction of Ukraine with the IMF should soften short-term financial risks associated with the growth of payments to repay sovereign debt.
International rating Agency Fitch Ratings affirmed long-term Issuer default rating (IDR) of Ukraine at B – with a stable Outlook.
This is stated in the message Agency.
“Ukraine’s ratings balance the weak external liquidity, high external financing needs due to the redemption of sovereign external debt and structural weaknesses from the point of view of the weak banking sector, institutional constraints, and geopolitical and political risks, against increasing the reliability and consistency of policies that improve macroeconomic stability, reducing government debt”, – stated in the message.
It is noted that the interaction of Ukraine with the International monetary Fund should soften short-term financial risks associated with the growth of payments to repay sovereign debt, starting in 2019.
19 October Ukraine and the IMF signed an agreement on the staff level for a 14-month agreement standby (SBA), which replaces the previous program (EFF) in March 2015. The government has received parliamentary approval of the budget of 2019 (first reading) with a target deficit of 2.3% of GDP and raising gas prices by 23%.
Fitch expects the IMF Board to formally approve the programme after the final approval of the budget.
A 14-month SBA agreement provides for total payments in the amount of 2.8 billion SDRs (spetsprava borrowing, 3.9 billion dollars equivalent).
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