Ukraine's Financial Crisis Deepens

Ukraine faces a deteriorating financial situation as it struggles to meet its debt obligations amidst a protracted war with Russia. The situation escalated with Ukraine's bondholders negotiating for debt restructuring, with the Ukrainians initially asking for significant reductions. By July, an agreement to implement a 37% haircut was reached, but soon after, credit ratings agency Fitch downgraded Ukraine’s rating, suggesting a deeper financial crisis was imminent. This downgrade, unexpected earlier in the year, indicated a material change in creditworthiness, prompting fears of an impending default.