Tuesday, December 30, 2014

Ukraine conflict: banks lose deposits, high inflation – Spiegel Online

Ukraine conflict: banks lose deposits, high inflation – Spiegel Online

Kiev – The Ukrainian banks among the biggest losers in the political-military conflict in the country. They suffer from a massive capital flight. In the waning year, the Institute had lost 29 percent of their deposits, the central bank chief Valeria Gontarewa said on Tuesday. In your opinion, the banking system of Ukraine is currently inoperable.

In the expiring year, economic output is likely to be dropped by 7.5 percent, said the central bank boss further, thus confirming previous statements. The inflation rate in late November at 21 percent. “Such a difficult year, our country has not experienced at least since the Second World War”, Gontarewa said.

The Ukrainian economy suffers enormously from the conflict in the east of the country, where since the spring of government forces and pro-Russian rebels fierce fighting deliver. The foreign exchange reserves of the country are fused together by more than half and be the first time in five years, less than ten billion dollars (8.2 billion euros). Background is an attempt to support the Ukrainian currency. The hryvnia has lost much of its value since the beginning. On Tuesday morning, had for a dollar Hryvnia 15.82 to be paid -. At the beginning there were only 8.24 hryvnia

In order to stabilize the state budget, the parliament in Kiev on Monday adopted an austerity package, which among other things, higher import tariffs cuts of social spending and simplification of corporate taxation provides. However, the expenditure for the Army to increase significantly. The aim of saving budget, it is also to facilitate the disbursement of loan tranches from the International Monetary Fund (IMF). IMF experts are expected on January 8 in Kiev.

For the coming year central bank chief Gontarewa expects at most a slight relaxation. “I think that will never happen again, what we have seen this year,” she said. “Without question, we are optimistic about 2015.” Accordingly, inflation should slow down a little, with Gontarewa emanating from a control between 17 percent and 18 percent. Back in November, the central bank boss had said that it expects to 4.3 percent next year with a decline in gross domestic product (GDP).

LikeTweet

No comments:

Post a Comment