22 Октября 2018

Ukrainian sovereign Eurobonds were little-changed last week, as news that Kyiv will finally renew its cooperation with the IMF with a scaled-down USD 3.9bn “standby” loan program arrived too late on Friday to have a substantial effect on trading. Globally, investors’ attitude to emerging market debt improved after Turkey received 3x over-subscription for its new USD 2bn Eurobond. The 5-year Turkish issue was placed with a yield of 7.5%. In Ukrainian related developments, the country’s Parliament has adopted the 2019 national budget in the first (preliminary) reading. The bill proposes a moderate deficit of 2.3% of GDP and is based on a consumer inflation forecast of 7.4%. Parliament also passed a bill in the first reading that establishes medium-term national budget planning for the country. The document should help to provide more confidence in the government’s debt servicing strategy.