UKRAINE’S economy, racked by war, is in free fall. In the second quarter of this year its GDP shrunk at an annualised rate of 15%, after shrinking by 18% in the first. Its public debt is probably worth 100% of its GDP. Small wonder, then, that Ukraine wants to cut some of the debt it owes. After months of bitter negotiations, Ukraine and its creditors may reach a deal this week. On what issues do Ukraine and its creditors disagree, and what is likely to happen?
