Ukraine May Be About To Default on Its Debt

Sergey Salivon, one of Kiev’s top economists and the country’s Director of the Department of Economic Policy of the Federation of Employers, told the business magazine Capital last week that Kiev had done a large amount of foreign borrowing over recent months, at extremely high rates. Government short- and long-term securities have been marketed at very high interest rates. Worse, “the cost of default insurance for Ukraine has multiplied and has overtaken Turkish swaps,” the official said, referring to the infamous CDS speculative instrument. RT added that “the economist warned that this crisis could mean the country will soon no longer be given credit on commercial terms.”