Fixed Income
Quotes for Ukrainian sovereign Eurobonds were little-changed last week, remaining within the narrow range in which they have been sitting since late March. It is somewhat surprising to see that the yield on Ukraine’s medium-term sovereigns is persistently exceeding (by 30-50 bps) the rates on Ukrainian blue chip agro names Kernel and MHP. Meanwhile, Western donors continue to be assertive in driving reforms in Ukraine, with Parliament adopting an important bill on setting new rules for the electricity market. The transformation of Ukraine’s opaque and corrupt electricity sector would certainly help to attract much-needed investments in electricity infrastructure. Among major changes that the new law envisages is elimination of the non-transparent state intermediary EnergoRynok on the wholesale electricity market. In a notable political development last week, NBU governor Valeria Gontareva announced her resignation after almost three years in the office. Gontareva has been credited with
