Fixed Income
Quotes for Ukrainian Eurobonds were little changed over the week in which the country marked its 25th anniversary of independence from Moscow. On the positive side, there was a notable decrease in shelling on the front line in Eastern Ukraine after heightened military activity through most of August. In economic-related news, it became clear that resumed funding to Ukraine is not on the immediate agenda of the IMF board. The delay is likely a deliberate one to highlight concern among Ukraine’s Western backers over the government’s failure to introduce a new electronic asset & income declaration system aimed at reducing corruption among state officials. The IMF had intended to release USD 1.7bn to Kyiv in the third tranche of funding in July after agreeing with the Groysman government on policies needed to complete the next review under the program. However, the IMF board refused to consider its Ukraine funding last month.
