The smoke clears as Ukraine pulls itself back from the brink – Telegraph.co.uk

Category: Ukraine

Reform has become a dirty word in the post-financial crisis politics of many countries, a euphemism for painful austerity.

But for Ukraine, a country born out of the collapse of the Soviet Union, it has been embraced as the only way forward.

In 2015, when Greece joined Zimbabwe to become one of a handfulof countries to default on itsInternational Monetary Fund bail-out loan, Ukraine was doing everything to meet the terms of its IMF rescue bargain.

War had broken out in the east of the country in a conflict that has so far claimed 10,000 lives. Ukraines currency collapsed, with the hryvnia halving in value overnight. Inflation spiked, and the countrys debt pile was heading to unsustainable levels.

At first, authorities burned through foreign reserves in a bid to prop up the currency. When it became clear they were fighting a losing battle, they embraced a flexible exchange rate.

Inflation...

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The smoke clears as Ukraine pulls itself back from the brink - Telegraph.co.uk

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August 19th, 2017
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