Fixed Income
Quotes for Ukrainian sovereign Eurobonds demonstrated a second week of notable retreat, as losses suffered by Cypriot depositors unnerved investors, and some analysts suggested Ukraine could be one of the countries hit by the fallout. Locally, IMF representatives are in Kyiv yet again to discuss a new USD 15bn loan to the country and are scheduled to remain until Apr 10. However, we see no improvement in the chances for the loan’s approval, with the Ukrainian government still refusing to implement unpopular decisions needed to curb the ballooning budget deficit. According to the latest data from the Finance Ministry, the budget deficit amounted to UAH 2.3bn (USD 282mn) in January-February 2013, compared to a surplus of UAH 4.7bn for the same period of 2012.
