Fixed Income
Quotes for Ukrainian sovereigns remained flat last week ahead of their exchange for 9 new restructured issues with annual maturities over 2019-2027 and a unified coupon rate of 7.75%. In Ukrainian politics, there are expectations of a government reshuffle in the near term, but no official announcements appeared last week, although Prime Minister Yatseniuk stated that Energy Minister Volodymir Demchyshin will be replaced. Meanwhile, on the budgetary front, the Finance Ministry has still not provided the national budget parameters for 2016, which are supposed to demonstrate a reduction of expenses in line with the proclaimed tax reform. The only point leaked from the draft budget bill is the forecast of a 24.10 UAH/USD average exchange rate for next year.
