08 Апреля 2019

Ukrainian sovereign Eurobonds rose notably last week, as the news that incumbent President Petro Poroshenko and entertainment mogul Vladimir Zelenskiy entered the Apr 21 presidential runoff had already been priced in by investors. The hottest topic of the week was whether the two candidates would agree on televised debates, with one of the proposals being to hold the debates at the national Olympiyskiy Stadium. Meanwhile, the World Bank worsened its forecast for Ukraine’s economic growth to 2.7% from 2.9% for 2019. The World Bank retained the forecast for Ukraine’s GDP growth in 2020 at the level of 3.4%, while for 2021 it was lowered to 3.7% from 3.8%. The country’s longest outstanding issue, Ukraine-32s, gained 1.6% to close at 90.3/91.1 (8.7%/8.8%) and medium-term Ukraine-24s rose 0.7% to 96.7/97.5 (8.6%/8.4%). The VRI derivatives (linked to Ukraine’s future GDP growth with expiration in 2040) added 1.7% to 65.0/66.0 cents on the dollar.