Ukraine said pro-Russian rebels killed three government soldiers, jolting a truce in the nations east as Prime Minister Arseniy Yatsenyuk called for an international effort to avoid a possible default.
To receive financial aid in order to survive in this difficult time, not to allow default, we need an international donor conference, the approval of Ukraines program, and to get support from our western partners, Yatsenyuk told lawmakers in Kiev yesterday.
The casualties follow Ukraines decision to halt hostilities on Dec. 9 in an attempt to start new talks with the insurgents its fighting in the Donetsk and Luhansk regions. Ukraine needs to expand a $17 billion international bailout program thats keeping its economy afloat after bonds fell to a record, Economy Minister Aivaras Abromavicius said this week, adding its too early to say how much more aid Ukraine requires.
The country may need to almost double its emergency loan within weeks to avoid bankruptcy, the Financial Times reported Dec. 9, citing unidentified officials. Representatives from the International Monetary Fund arrived in Kiev this week to discuss further payments under the existing program and a possible expansion.
Part of the mission is assessing the financing needs of Ukraine and how those financing needs will be fulfilled, IMF spokesman William Murray told reporters yesterday in Washington. Its really important that the donor community step up and provide financing.
Yatsenyuk referred to the Financial Times story yesterday, telling lawmakers it was the newspaper, not he, saying the country may need the extra $15 billion in aid.
Its very difficult for us to get out of this crisis alone; without the support of international partners it is practically impossible, Yatsenyuk said.
His finance minister, Natalie Jaresko, said Ukraine is neither in default, nor in a pre-default condition, according to an interview with weekly magazine Focus.
This question isnt being discussed at the government at all, she told Focus. Though no one conceals that the situation is very difficult: Ukraine needs urgent stabilization of the financial sector, including the banking sector.
Concerns are growing that the government in Kiev will be unable to repay its debts as the fighting in two eastern breakaway regions takes its toll on Ukraines economy. The conflict has wiped out 20 percent of the countrys economic potential, according to the prime minister.
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Ukraine Cease-Fire Shaken as Premier Warns on Default Threat