Sunday, April 19th4.3°C
25933
25870

IMF says Ukraine could need billions in additional aid if fighting persists

BRUSSELS - While Ukraine's leaders are trying to win the war against Russian-backed separatists in the east, they appear to be losing the battle to resurrect the country's battered economy.

Ukraine might need billions in additional support if the fighting between the military and the separatists in the country's east persists through next year, the International Monetary Fund warned Tuesday. Only covering the shortfall in the central bank's reserves would require an additional $19 billion by the end of 2015, the fund said.

If the fighting eases over the coming months, the country's economy would still be shrinking by a sharp 6.5 per cent this year, with meagre growth on the horizon next year, according to the IMF. Analysts, however, say the damage to Ukraine's gross domestic product is likely to be even more severe.

"There is no end in sight to the conflict, so it's almost impossible to make growth forecasts," said Timothy Ash, the head of emerging markets research at Standard Bank in London. "The recession this year will be deeper — maybe minus 8 per cent — and there will be no recovery next year."

Just as for the military stand-off in the east, Russia's actions will be key to the country's economic future, too.

"Risks loom large" because of the fighting and the unresolved dispute with Russia over prices on gas imports and arrears, the IMF acknowledged in its first in-depth assessment since granting the country a $17 billion bailout program in March.

The Canadian Press


Read more Business News

25925


Recent Trending




Today's Market
S&P TSX15360.55-26.22
S&P CDNX702.85-2.74
DJIA17826.30-279.47
Nasdaq4931.81-75.98
S&P 5002081.18-23.81
CDN Dollar0.8169-0.0001
Gold1204.10+6.10
Oil56.14-0.57
Lumber245.50-9.80
Natural Gas2.641-0.043

 
Okanagan Companies
Pacific Safety0.12+0.00
Knighthawk0.010.00
QHR Technologies Inc1.40-0.01
Cantex0.035+0.005
Anavex Life Sciences0.33+0.02
Metalex Ventures0.075+0.030
Russel Metals27.48-0.23
Copper Mountain Mining1.13+0.01
Colorado Resources0.10-0.00
ReliaBrand Inc0.005+0.001
Sunrise Resources Ltd0.04-0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation1.80+0.15

 



25694

FEATURED Property
22662622234 Terrero Place
$639,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Calling on your help!

Has the internet flattened prices as predicted? Has the internet created opportunities for your business to find higher priced markets further afield? Is posting prices on your website a good thing o...


Living with Plan B

“It does not do to leave a live dragon out of your calculations, if you live near him.”― J.R.R. Tolkien, The Hobbit Photo: Thinkstock.comHuman beings are optimists by nature. Whether...


Reverse mortgage solution

With the housing and financial markets on solid footing, some retired Canadians may consider cashing in their growing assets to enjoy vacations and major home renovations. Others, on the other hand, a...

_



25979

25922


Member of BC Press Council


24875