Syria: An end to the hands-off policy. CEPS Commentary, 31 August 2015

After a year of focusing on the nuclear deal with Iran, international diplomacy is returning to consider resolution of the civil war in Syria, with each side now a little less firm in their positions as the situation on the ground deteriorates further. In this new CEPS Commentary Steven Blockmans sheds light on the highly complex and volatile environment in the Middle East, concluding that failure to seize the new diplomatic momentum to resolve this conflict will likely mean that Syria falls into the hands of IS.

Ukraine on the financial front – the problem of Ukraine’s foreign public debt. OSW COMMENTARY NUMBER 178|05.08.2015

One of the key challenges that Ukraine is facing is the scale of its foreign debt (both public and private). As of 1st April it stood at US$ 126 billion, which is 109.8% of the country’s GDP. Approximately 45% of these financial obligations are short-term, meaning that they must be paid off within a year. Although the value of the debt has fallen by nearly US$ 10 billion since the end of 2014 (due to the private sector paying a part of the liabilities), the debt to GDP ratio has increased due to the recession and the depreciation of the hryvnia. The value of Ukraine’s foreign public debt is also on the rise (including state guarantees); since the beginning of 2015 it has risen from US$ 37.6 billion to US$ 43.6 billion. Ukraine does not currently have the resources to pay off its debt. In this situation a debt restructuring is necessary and this is one of the top priorities for the Ukrainian government as well as for the International Monetary Fund (IMF) and its assistance programme. Without this it will be much more difficult for Ukraine to overcome the economic crisis.