(VOVworld) – Ukraine is likely to go bankrupt if international institutions do not step in with more financial aids. Ukraine’s economy was estimated by the International Monetary Fund to have receded by 6.5 percent in 2014, more than the earlier estimate of 5 percent.

The currency exchange table at a monetary transaction center in Kiev (Photo: Reuters)

Besides, a budget deficit and devaluation of the hryvnia, Ukraine’s public debt may increase to 90 percent of GDP in 2015. According to IMF, this debt is unstable and in addition to an approved 17 billion USD loan package, Ukraine needs another 15 billion USD to avoid bankruptcy.

Ukraine’s economy is in difficulty following socio-economic instability worsened by a 9-month conflict with pro-independence forces in Ukraine’s eastern region. Ukraine is negotiating with the IMF for more financial assistance. IMF inspectors will arrive in Kiev next Wednesday to discuss a new financial aid package for Ukraine.

On Wednesday, Germany signed a 500 million euro loan to Ukraine to rebuild the eastern region.