Ukraine’s central bank has jacked up its main interest rate to 19.5 percent from 14 percent trying to avert financial collapse, brought ever closer by fighting in the country’s east and a lack of foreign funding.

It is also trying to put a lid on annual inflation which hit almost 25 percent in December.

Some analysts say unless there is a ceasefire with pro-Russian rebels, foreign financing from the International Monetary Fund or elsewhere will be difficult to secure.

The former Soviet republic desperately needs funds from donors to fill an estimated $15-billion (20 billion euro) funding gap to withstand the financial crisis, deepened by a surge in fighting in eastern regions.

With the value of the hryvnia currency rapidly declining and foreign exchange reserves running out, Ukraine’s central bank has few ways to revive a near bankrupt economy.

The central bank’s efforts to secure the economy are not seen as standing much chance of success. “It’s more about economic failings