by Sergio Zalyubovskiy
I repeat my post about the financial situation in Ukraine. FYI, so to say.
I would not be celebrating, if I were Russia, i.e. the country having the external debt of 650 billion, which continues to grow this year rather disastrously, I estimate it can easily reach 800-850 billion. Instead I would be preparing canned food and packing my suitcase. The situation there won’t get better, that’s for sure.
Regarding Ukraine. The dollar usually climbs for two reasons: 1. Inflation. 2. The absence of effective mechanisms of financial regulation. If the national bank had enough currency, it could regulate the dollar exchange rate by releasing its reserves. Currently, this option is not possible. The next year or two is going to be difficult, the tax burden would be increased because of the external borrowings; subsidies would be reduced or canceled. In the absence of financial resources, it is…
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