Analysis Firm MSCI Inc has decided to withdraw from Ukraine index of frontier markets (Frontier Markets).
The country was considered a Frontier Market, cross-border capital movements must be permitted at least not completely. The reason For the decision was that the national Bank of Ukraine in early March, has imposed limits on capital transactions, reports " news Agency ".



The term "Frontier markets" was coined in 1992 to refer To the emerging and more are available in economy, but with investment potential. Frontier markets have lower capitalisation compared with traditional emerging markets. For investors, the designation of the country as a border is a signal about the fact that over time the market will become liquid, and the risk level reaches the values characteristic of emerging markets. We emphasize that Kiev had linked the fall of the Ukrainian economy with the situation in the South-East of the country. So, the Prime Minister of Ukraine Arseniy Yatsenyuk said that because of the conflict in Donbas, the Ukrainian economy will lose about 20% of funds coming. According to his statement, " 20% of the Ukrainian economy is concentrated in Lugansk and Donetsk."" Because of Russian aggression, we lost 20% of funds coming, 20% of foreign exchange earnings, 20% of the economic potential of the country, " he added. Ukraine is now in a serious political crisis, which affects its economy and the public sector, in fact the country is on the verge of default. Prime Minister of Ukraine Arseniy Yatsenyuk stated before that in 2015, the country faces the challenge to " survive ".

sections: Politics