War-torn economy sees prices soar as it plans to ease capital controls following IMF bail-out
Inflation will soar this year as authorities fight back economic collapse
Inflation will hit 44pc in Ukraine this year, as the embattled economy has seen prices soar amid economic collapse.
Consumer prices have hit eye-watering levels in 2015, according to the
country's central bank governor. Inflation averaged 24.9pc in 2014.
Valeria Gontareva, of the National Bank of Ukraine, said authorities were aiming to get inflation to around 5pc by 2019.
The war-torn economy, which has been plunged into crisis following conflict with neighbouring giant Russia,
will also start to gradually lift capital controls as it begins to
receive disbursements of bail-out cash from international lenders, said
Ms Gontareva.
Ukraine is set to receive
around $9bn in rescue cash in 2016, including $4.5bn from the
International Monetary Fund, $1.5bn from the EU, and $1bn loan guarantee
from the United States, which will be released in the first quarter of
next year.
• Kremlin on collision course with Ukraine over debt haircut
The economy has also lumbered under capital controls which limit the purchasing of foreign exchange in a bid to protect the collapsing value of the hryvnia.
Bail-out cash will also help boost Ukraine's dwindling foreign exchange reserves, which have steadily grown over the last months to stand at $13.3bn in December.
Ukraine has been locked in a stalemate with Moscow over the repayment of a $3bn bond. Kiev defaulted on the debt earlier this month after Russian authorities refused to take part in a private sector debt haircut.
The issue has also stoked tensions with the IMF in Washington, which changed its lending rules to continue providing aid to governments who fall into arrears.
But Ukraine's central bank chief said there was now no "hindrance" to the release of IMF aid to the country in 2016.
"The IMF mission has agreed everything, they don't need to come to Kiev anymore."
Photo: MINDAUGAS KULBIS/AP
• Kremlin on collision course with Ukraine over debt haircut
The economy has also lumbered under capital controls which limit the purchasing of foreign exchange in a bid to protect the collapsing value of the hryvnia.
Bail-out cash will also help boost Ukraine's dwindling foreign exchange reserves, which have steadily grown over the last months to stand at $13.3bn in December.
Ukraine has been locked in a stalemate with Moscow over the repayment of a $3bn bond. Kiev defaulted on the debt earlier this month after Russian authorities refused to take part in a private sector debt haircut.
The issue has also stoked tensions with the IMF in Washington, which changed its lending rules to continue providing aid to governments who fall into arrears.
But Ukraine's central bank chief said there was now no "hindrance" to the release of IMF aid to the country in 2016.
"The IMF mission has agreed everything, they don't need to come to Kiev anymore."
Photo: MINDAUGAS KULBIS/AP 
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