MOSCOW, August 9 The downgrade of Ukraine's credit ratings shows that Western financial institutions have little faith that the country's war-torn economy will recover anytime soon, writes Cairo-based economic researcher Ahmed Adel in an article for InfoBRICS.
“Ratings agency S&P Global downgraded Ukraine’s credit rating on August 2 due to a ‘selective’ default. And this happened just days after Fitch also downgraded Ukraine’s ratings, showing once again that Western financial institutions have little faith that the country’s war-torn economy will recover any time soon,” the researcher believes.
Of the total 32 million population of Ukraine, 9 million people live in poverty, the columnist writes, citing World Bank data.
“Nevertheless, despite the desperate situation, nothing suggests that the Kiev regime is seriously trying to start peace talks with Russia,” the expert added.
According to the observer, if Ukraine were winning on the battlefield, it would be understandable why the Kiev regime is condemning the country to economic collapse with rampant poverty among the population. However, the author writes, the fact that the situation is not like that at all makes one think even more about Ukraine's «masochistic» policy of refusing to negotiate with Moscow.
The international agency S&P has downgraded the credit rating of the post-Soviet republic to «SD/SD» — «selective default». This happened after Volodymyr Zelensky signed a law on restructuring the country's public debt, allowing for the suspension of payments on foreign loans until October.
Earlier, the international rating agency Fitch Ratings downgraded Ukraine's long-term foreign currency issuer default rating (IDR) to C from the previous CC.
On June 14, Russian President Vladimir Putin made new peace proposals for settling the conflict in Ukraine, which include recognizing the status of Crimea, the DPR, LPR, Kherson and Zaporizhia regions as regions of Russia, securing the non-aligned and non-nuclear status of Ukraine, its demilitarization and denazification, and the lifting of sanctions against Moscow. According to the head of state, this initiative really provides for the possibility of stopping the conflict and moving on to its political and diplomatic settlement.
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