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Briefing

Ukraine Banks

Appears in: Europe, Finance and Banking, Commonwealth of Independent States, Emerging Europe and CIS, Russia, CIS and the Caucasus, Banks

Critical Issues

Background:

The combination of global financial market turmoil, worsening macroeconomic fundamentals and political uncertainty have resulted in deposit outflow, tighter domestic money market rates and exchange rate volatility, increasing near term risks for Ukraine's banking sector. Steel price slump has added to Ukraine's economic woes. Its high reliance on external finance makes it particularly vulnerable in the global slowdown and credit crunch.

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