Even with thousands of protesters on the streets calling for his resignation, President Viktor Yanukovich arrived in China yesterday for talks on billion-dollar loans and investments that could shore up Ukraine’s ailing economy.
Rather than showing confidence he could control the situation at home, the president’s pressing ahead with the trip probably reflects the acuteness of Ukraine’s economic problems.
Ukraine is in recession, has ballooning budget and current account deficits and is suffering balance of payments pressures. Yields on its dollar-denominated notes due next June jumped above 20 per cent yesterday and the cost of insuring its debt against default has risen sharply.
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