Tuesday, November 25, 2014

Russian news: The Experts Agree - Ukraine's Economy is in Cardiac Arrest - Russia Insider

"Unless actions are taken pretty soon, the odds of Ukraine falling into financial and economic collapse are very, very large," said Lubo Mitov, chief economist of the Institute of International Finance.

Over the next six months, Ukraine needs $10 billion to $15 billion more than what has been promised by international organizations such as the International Monetary Fund, the IIF said. Without an injection of cash soon, "people will start freezing in the winter," because the country won't have the cash to pay for natural gas.

Between this year and next, the IIF expects the Ukrainian economy to decline by at least 20 percent, causing a huge drop in tax revenue. The steep decline is expected in part due to the loss of eastern Ukraine to militant separatists that are widely believed to receive support from Russia.

Mitov dismissed Ukraine's better-than-expected 5.1 percent economic contraction in the third quarter of this year, saying that hard data related to industrial production, exports, tax revenue and real incomes are registering "double-digit declines."

Complete story at - Russian news: The Experts Agree - Ukraine's Economy is in Cardiac Arrest - Russia Insider

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