Ukraine bond prices have crashed to new record lows this morning - with even 2015 maturing debt trading at a 25% discount to face - following calls (admissions) by Ukraine's new (Lithuanian) economy minister that the government will need more IMF help on top oif its current $17 billion package. The country may need another $19 billion next year!!!
Ukraine's new economy minister, Aivaras Abromavicius, said on Wednesday the government wanted the International Monetary Fund to expand its $17 billion bailout package due to Ukraine's worsened economic outlook.
"We want to expand the programme given the difficult situation. Calculations are being made," Abromavicius said at a briefing, adding that it was too early to say how much extra cash would be needed.
The IMF, which is visiting Kiev this week for talks on the bailout programme with the government, warned in September that if Ukraine's conflict with pro-Russian separatists runs into next year, the country may need as much as $19 billion in extra aid.
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So how long before the IMF has encumbered the assets of the entire (non-Russia) state?