Ukraine unable to sustain credit rating

Jordan News.Net
Thursday 12th November, 2009

Ukraine's credit rating has been cut by the Fitch group, which has said a delay in IMF funding combined with the country's huge budget gap could lead to more instability.

Ukraine is being pushed down by a the economic recession and lack of government cooperation with the International Monetary Fund.

The Prime Minister of Ukraine, Yulia Tymoshenko, has warned the IMF needs to release a promised $3.8 billion or Ukraine will not be able to pay gas and oil debts to Russia.

Tymoshenko has blamed the IMF delay on President Viktor Yushchenko, because he approved a minimum wage rise that the fund opposed.

European leaders have become concerned at the credit rating cut, as they want to avoid another energy row between Kiev and Moscow during the winter.

In January, Russia stopped gas supplies, including those intended to transit Ukraine, leaving Europe in the cold.

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