The international rating agency Standard & Poor's announced today the pre-default state of the Ukrainian economy, downgrading Ukraine's sovereign rating by one point. The outlook is negative, the agency said.
In addition, a significant foreign currency account deficit will provoke a drop in the hryvnia exchange rate by 11 percent - to 10 hryvnia per US dollar in 2014.
“There is a high likelihood of a forced devaluation of the hryvnia,” writes Standard & Poor's.
According to the agency's analysts, Ukraine needs external financing 1.5 times that covers all receipts on the current account and available reserves in 2014.
The National Bank will soon have nothing to maintain the stability of the hryvnia, the agency notes.
Ukraine's foreign exchange reserves in January of this year decreased by 12.7 percent to $ 17.8 billion. Over the past month, the NBU spent 1.7 billion dollars of foreign exchange reserves to support the national currency.
The Ukrainian hryvnia will drop to 10 per dollar
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