Tuesday, May 19, 2015

Alarming & Important Development in Ukraine. (Suspending Foreign Debt Payments or Applying Default and the Unpredictable Reaction of Russian Creditors).

Briefly:

According to Guardian news paper:

"Ukraine’s parliament on Tuesday handed ministers the power to suspend foreign debt payments to defend against “unscrupulous” creditors" (Guardian, 2015).

In addition to Greece, Italia, Portugal and Spain, Ukraine is facing a serious economic crisis. Today's parliamentary vote, however, indicate the fact that in addition to current civil war and economic problem, Ukraine would be the source of some other surprises in various terms in the near future(e.g. applying default and the reaction of Russian creditors). The international community, particularly the EU, should pay more attention to Ukraine because of its current special circumstances. The collapse of political system (or e.g. applying default or suspending foreign debt payments) in a country like Ukraine with a population size of nearly 45 million people would badly impact the whole EU in different terms.



M. Sirani                      19.05.2015

Reference:
The Guardian: http://www.theguardian.com/world/2015/may/19/ukraine-vote-gives-government-power-to-suspend-foreign-debt-payments