Central bankers and economists are sounding the alarm in Kyiv, Ukraine. The Finance Ministry’s account balance has fallen to its lowest level in four years. The hryvnia is falling fast now, and fell nearly 4 percent over the last three weeks. Eurobond sales and foreign aid could remedy the cash-flow problem, but the International Monetary Fund’s next disbursement has been delayed for more than a year over foot dragging on reforms. Acting Finance Minister Oksana Markarova says that a deal is very close, but there are still differences to be worked out before the IMF releases the next $1.9 billion tranche.
We asked UkraineAlert experts and friends the following: Will Ukraine face a serious financial crisis if it does not get any IMF money before November?