And so, Kiev has bought itself more time, though at borrowing rates much more expensive than the IMF has offered. It’s a strategy Ukraine has stuck to in recent years, but one that may not be possible if market confidence shrinks and the country’s economy continues to deteriorate.
Financial Times: Fresh cash, but not from IMF
Ukraine’s cash-strapped government failed to reach agreement on Wednesday with a visiting IMF mission on a $15 billion bailout, according to local officials. Having realised that a deal was unlikely, Kiev moved on Tuesday to patch up short-term financing needs. Ukraine raised $1.25 billion through a fresh 10-year eurobond at 7.5 percent on Tuesday, helped by international investors’ hunt for yield.