Ukraine's Government Collapses, PM Yatsenyuk Resigns

As if Ukraine was not struggling through enough turmoil currently,Bloomberg reports that the fragile coalition government has collapsed after two parties quit. The UDAR and Svoboda parties said they’d leave the government and seek a snap parliamentary ballot. Tempers have been fraying recently as numerous brawls have broken out in parliament ahead of President Poroshenko's pledge to call elections this year. All we have to do now is find out who Washington would like to see in power? The end result: Prime Minister Yatsenyuk just resigned. The big question now is what will the IMF do about the remaining tranches of its loans? Via BBG:

• *YATSENYUK RESIGNS
• *YATSENYUK SAYS HE RESIGNS BECAUSE OF COALITION COLLAPSE
• *YATSENYUK SAYS HE WON'T CALL FOR A NEW COALITION
• *YATSENYUK SAYS HE RESIGNS ALSO BECAUSE GOVT LAWS FAILED TO PASS
• *UKRAINE SPEAKER TURCHYNOV CALLS FOR INTERIM PREMIER

How The Ukrainian government has settled these problems in the past.

As Bloomberg reports,

Ukraine’s coalition collapsed after two parties quitduring a months-long pro-Russian insurgency in the nation’s east that downed a Malaysian Air jet last week.

The UDAR and Svoboda parties said they’d leave the government and seek a snap parliamentary ballot,according to statements today on their websites. Under the constitution, the former Soviet republic has 30 days to form a new coalition or it must call early elections. The existing cabinet will remain in place in the meantime.

Prime Minister Arseniy Yatsenyuk’s government, took over the country in February after pro-European street protests prompted Kremlin-backed President Viktor Yanukovych to flee to Russia. Yanukovych’s successor, billionaire PetroPoroshenko, had pledged to call parliamentary elections this year.

“We will probably have snap parliamentary elections at the end of October,” Yuriy Yakymenko, the head of political research at the Razumkov Center, said by phone from Kiev today. “This option was probably agreed on by political parties seeking elections and the president.”

The government and the current parliament will keep working until new institutions are formed, he said. Olga Lappo, Yatsenyuk’s spokeswoman, declined to comment when reached by phone today.

*  *  *

Ukrainian bonds are tumbling on the news...

Credit to Zero Hedge