Fitch Predicts an Upturn in Ukrainian GDP

Oct 29, 2010, 02:00 ET from Worldwide News Ukraine

KYIV, Ukraine, October 29, 2010 /PRNewswire/ -- The international rating agency Fitch announced its prediction of a 5% growth in Ukraine's GDP in 2010 and a 4.5% in 2011. According to Fitch, Ukraine's nominal GDP in 2010 will constitute 140,9 billion USD and 164,9 billion USD by the end of 2011.

As reported earlier, in October 2011 another international rating agency, Moody's Investors Service, has changed its forecast in respect of Ukraine's state obligations rate (B2) from negative to stable. Commenting on this development, the press service of the agency stated that the decision reflected the positive recent dynamics in Ukraine's economy. In particular, the agency's decision was influenced by the overall improvement in Ukraine's economic growth reflected in Ukraine's conclusion of the new credit agreement with the IMF, as well as in the country's successful issuance of Eurobonds.

In September 2010 Ukraine issued $2bn in two eurobonds, paying investors a coupon interest rate of 6.9 per cent for five year debt and 7.8 for 10-year loans.

The International Monetary Fund approved a 2 1/2-year, $15.2 billion loan program for Ukraine in July 2010. To secure the loan, Ukraine agreed to trim its budget deficit and raised natural gas prices to qualify for the funds.

SOURCE Worldwide News Ukraine