KIEV, Jan. 22 - The declines on stock markets around the globe will reduce the effectiveness of initial public offerings by Ukrainian companies and increase the costs of borrowing on the domestic market, Ukrainian bankers surveyed by Interfax said on Tuesday.

"The wave of losses on the developed stock markets in the U.S., Europe and Southeast Asia will encourage foreign investors to sell off Ukrainian shares as they seek safe harbor," said Ukrgasbank (Kiev) treasury director Andriy Ponomarev. "How long the stock market correction in Ukraine persists will affect the depth of the impact on the Ukrainian economy. In the short term, it will impact the effectiveness of Ukrainian IPOs," he said.