Ukraine could become the most indebted country of the IMF

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Posted on March 8, 2022 The International Monetary Fund is studying opening a loan of 1,400 million dollars to Ukraine to help them recover and rebuild, an amount that would be added to those already given to them worth 11,600 million, thus becoming the most creditor country of the organization. The American risk rating agency Moody’s once again lowered Russia’s rating four notches to “Ca”, due to a high probability of default, although the Russian Ministry of Finance stated that it would pay sovereign debts as long as they were not hampered by international sanctions. Payments to local creditors in foreign currency-denominated bonds will be made in rubles, while maintaining capital controls. Visa and MasterCard companies also suspended all their operations in Russia. As for raw materials, the path of the vast majority continues to rise. The price of oil rebounded with the news that the United States was studying with its allies an embargo on Russian crude. High energy prices threaten to stop global growth, but also raw materials such as wheat, palladium, aluminum and gold continue to add increases not seen in decades. In the USA, despite the good data on its labor market, investors can only look to the Ukraine. The dollar and public debt continue to act as a safe haven, attracting capital. In the United States, employment data was surprisingly good, beating market expectations. Non-farm payrolls in the month of February were 678,000, considerably above the market consensus (400,000) and the previous month’s figure (481,000). The unemployment rate in February fell to 3.8% compared to the figure for January, which was 4%, which reinforces the opinion that the American labor market is close to full recovery. In the foreign exchange market, during last Friday’s session the price of the EUR/USD pair moved in a wide range of 1.0886-1.1068 to end up closing the session in European time at levels of 1.0928, losing the psychological level of 1.10 after the publication of the American employment data. The interest rate on the 10-year US bond fell sharply to close the week at levels of 1.74%. The euro depreciated considerably against the main currencies due to the uncertainty in the old continent due to the war between Russia and Ukraine. The community currency depreciated against the Japanese yen and the Swiss franc, to 125.55 and 1.0024 respectively, while the euro’s declines against the pound sterling during the session were more limited, reaching levels of 0.8260. INFORMATIONTitleUkraine could become the most indebted country to the IMFDescriptionThe International Monetary Fund is studying opening a loan of 1,400 million dollars to Ukraine to help it recover and rebuild, an amount that would be added to those that were already delivered for a value of 11,600 million, becoming thus in the most creditor country of the organism. Author GLOBALCAJA

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