Fitch Ratings has downgraded the Ukrainian City of Kyiv's Long-term foreign currency Issuer Default Rating (IDR) to 'D' (Default) from 'C'.
Ukraine’s Western allies are preparing to accelerate planned changes to the International Monetary Fund’s lending policies to prevent Russia from stymieing a $25 billion rescue package for the war-torn nation.
Ukraine was able to agree with the creditors' committee upon the restructuring and partial remission of the country’s debt.
Venezuela, Greece and Ukraine have entered the top three countries whose national debts are considered the most risky by the analyst from Bank of America Merrill Lynch.
Experts forecast possible default of Ukraine this Friday. They believe Kyiv still could succeed in creditors' talks, but after the default.
The law on the right of the Cabinet to impose moratorium on payment of foreign debt will allow to declare a technical default, unless an agreement with creditors on restructuring is reached.
The Ukrainian State Railway Administration Ukrzaliznytsia has informed its creditors that the company is in technical default.
Ukraine is not going to declare default in the near future as it has all the resources to meet its obligations, including obligations under the debt securities issued in exchange for a loan from the Russian Federation.
Declaration of default and the sharp depreciation of the hryvnia may be consequences of the fact that the government cannot cope with the payments that must be carried out in 2013.