World Economy

Ukraine May Default

Ukraine May DefaultUkraine May Default

The Fitch ratings agency has affirmed Ukraine’s long-term foreign currency Issuer Default Rating at ‘CCC’, meaning that default remains a real possibility, Sputnik reported. “The affirmation of the ratings reflects a lack of progress on the reform program needed to unlock donor support, which has been exacerbated by political wrangling,” Fitch said in a press release on Friday. Fitch argued that the new government of Prime Minister Volodymyr Groysman is likely to move ahead with the reforms. “However, given the coalition’s narrow majority (one seat) as well as weak party discipline within President Petro Poroshenko’s party, Fitch expects progress on further reforms to be piecemeal with continued delays in IMF financing highly probable,” the press release said.