Sunday 26 October 2008
During the past few weeks Ukraine has had a few ups and downs, mainly downs.
The national currency, the Hryvna (UAH) has fallen against the USD and other currencies.
The IMF are considering granting a loan to the country of around $15billion.
Some Ukrainian banks suffered from a 'run on' by depositors about fears of a banking collapse.
Indeed many banks have restricted the flow of funds on instructions from the National Bank of Ukraine.(NBU)
Many Ukrainains have enjoyed the ease of obtaining mortages in hard currency, usually USD.
Now they have the problem of significantly higher repayments, as they are obliged to repay in USD and not UAH.
If the NBU allows the UAH to float freely on the exchange market it could be the end to the good old days of when the UAH was sat nicely at 4.85 to USD 1
Moreover, we have the added opportunity and problem of an impending parliamentary election on 15th December. The President has called an early election and the country is facing a third set of elections in as many years. Probably the last things Ukraine needs right now is another election. The people are tired of the political situation and many forecast the turnout will be low.
Anyhow.....the next BBCU meeting will be on Thursday 30 October in our usual meeting place in Kyiv. The theme: Business Services Outsourcing.