Fixed Income
February 29, 2016
Ukraine’s sovereign Eurobonds saw notable losses last week as it became clear that the IMF loan tranche of USD 1.7bn previously promised by President Poroshenko to arrive in February is obviously going to be postponed. The benchmark 10-year sovereign issue slid 4.4% to 81.3/82.3 (10.8%/10.6%), as a cloud of uncertainty continues to hang over Ukraine’s economic performance without direct Western support. The country’s current liabilities to the IMF stood at around USD 11.6bn as of start of the year, after Kyiv received USD 6.55bn from the IMF in 2015 while repaying USD 1.49bn in previous IMF loans.
