Fitch downgrades Ukraine's credit rating, cites political instabilityFebruary 8, 2014 - 11:00 AMT PanARMENIAN.Net - Fitch downgraded Ukraine's long-term foreign currency Issuer Default Rating (IDR) to 'CCC' from 'B-', citing political instability in the country, Reuters reported. Ukraine is struggling to prop up its currency amid a political crisis with anti-government demonstrators taking to the streets to protest against a move closer to Moscow's economic orbit. A debt crisis has left the country on the verge of bankruptcy. "The financial system remains fragile, burdened by non-performing loans of 30 percent, and represents a contingent liability to the sovereign...," Fitch Ratings said. Fitch said the falling reserves, a weak outlook for its currency and reducing prospects of Ukraine's access to external funding undermine its debt servicing ability. Fitch ratings also cut the country's short-term foreign currency IDR to 'C' from 'B'. Russia suspended a $15 billion bailout last week after President Viktor Yanukovich, in a concession to protesters, sacked the pro-Russian prime minister. Ukraine's central bank on Thursday, Feb 6 introduced restrictions on certain types of foreign exchange purchase to help defend the stability of its banking system. The hryvnia fell below 9 per dollar on Wednesday for the first time in five years. It traded at 8.53/8.56 against the dollar on Friday at 1430 GMT. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | The Power of One Dram to benefit Road of Life charity The companies inform that the May beneficiary of The Power of One Dram is the “Road of Life” charitable organization. Ucom General Director gives lecture at French University in Armenia The General Director of Ucom Ralph Yirikian delivered a lecture at the French University of Armenia. Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. |