Ukraine is in the global crisis

Украина входит в мировой кризис

Our country is in the global economic crisis caused by the spread of coronavirus in the world.

This Olfin learned from the statements of Prime Minister Dmitry Smagala.

He noted that early to panic, today the domestic economy and the banking sector to be more sustainable than in 2008.

Note that experts are not configured positively. They argue that margin of safety our country will not last long, and then, without any further cooperation with the International monetary Fund the impact to the economy will be “very painful”.

Today, the situation with the negotiations between the Ukrainian government and the IMF are not very happy. The Fund had previously stated that the previous government of Ukraine has not fulfilled its obligations. Bloomberg added that after the resignation Goncharuk negotiations for some time will be delayed. And Deputy Alexander Dubinsky announced that the representatives of the IMF in informal communications announced the new Premier Denis Shmyhalou that “credit will not.”

At the same time, Shmigal said that Ukraine still has to fulfill two of the eight parameters of the IMF, which will run for two to three weeks. And the President announced a meeting with Fund representatives in Washington.

Domestic government bonds, depending on the growth of the gross domestic product has decreased in price by 8.5% to 99,1%. The main reason was the coronavirus, which more and more destroys the world economy. Nerezidenti also reduced its portfolio in the structure of domestic government bonds because of the reluctance to invest in risky assets. If a week ago, on March 3, foreigners were bonds of domestic Treasury bonds in the amount of 127,126 billion UAH, that on March 10 this figure decreased to 125,336 billion.

We will add that another risk for the domestic economy are payments for obligations of our country in March. March 11 – payment on t-bills 0.95 billion UAH, March 13 – the IMF disbursement 407 million. is already more than 25 billion UAH. 25 March – payment on Eurobonds on $ 110 million. – another 2.7 billion.

Recall, on the background of the spread of coronavirus Ukraine actually stopped traffic with Italy and can close with other countries. Our country is one confirmed case of infection with the new virus, however, Kiev has already closed on quarantine.