Published time: February 27, 2014
‘Treasury empty’, Ukraine’s economy in free fall
Ukraine’s new Prime Minister, opposition leader Arseny Yatsenyuk, has promised the government would do its best to avoid a default, a difficult task as the country’s treasury is empty and the economy is in disarray.
Yatsenyuk says he expects an EU/IMF economic stabilization package soon, but didn’t give any specifics on timing.
Strengthening ties with the European Union and the International Monetary Fund will remain a priority as Ukraine rebuilds, Yatsenyuk said on Thursday in Kiev, Itar-Itass reported.
Yatsenyuk said negotiations with Russia would continue, and he considers the neighboring country “a partner”.
The IMF failed to come through with a loan of $10-15 billion last August, and it remains to be seen what offer they will come up with for the new government. But in December Ukraine signed a $15 billion loan deal with Russia. The first $3 billion was paid to Ukraine in December, but the second installment of $2 billion, is postponed until Moscow deems Ukraine has formed a legitimate government.
Yatsenyuk believes the economic trouble ahead will likely make him the most unpopular PM in Ukraine’s history.
Central Bank woes
Ukraine has a massive debt, both domestically and abroad. Propping up its overvalued currency with interventions has drained much of the country’s foreign exchange reserves, which are now close to $15 billion.
Read More: rt.com
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