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Capital Economics

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Emerging Europe Economics Update

Emerging Europe Economics Update

Financing risks on the rise in Ukraine

A hefty external financing requirement is casting a long cloud over the economic outlook for Ukraine. With limited access to private capital, the government will soon have no other option but to turn to the IMF. However, given the high political costs, we do not rule out the possibility that an agreement with the Fund will not be achieved, in which case Ukraine will find itself on the brink of default.

 

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