A SUPPLEMENT TO EUROMONEY/APRIL 1998: EASTERN EUROPE
Just two years ago, when shareholders for the European Bank for Reconstruction and Development (EBRD) decided to hold their 1998 annual conference in Kiev, most were convinced Ukraine would be an investor's paradise by now. As one analyst puts it, "Ukraine was seen as a magnificent Russia convergence play."
But now, just before the early May conference, Ukraine has instead found itself in embarrassing financial straits. The US and the IMF, perhaps quick to spot an opportunity, have threatened to suspend financial assistance on the very eve of the conference unless the government makes immediate reform concessions.
"They'll look pretty foolish if that happens," one of the conference organizers grumbles. "This was supposed to be the Ukraine's chance to shine."
In the meantime, the government is scrambling to get ready for the conference itself.
Construction crews are working seven days a week, from early morning, to get Kiev's hotels ready in time for the onslaught of visitors which will descend upon the city for the five-day conference between May 8 and May 12. Originally, the government was planning to erect about five new hotels for the conference.