Fixed Income

September 14, 2020

Ukrainian sovereign Eurobonds ended lower last week amid an overall global correction in higher-risk assets. The prevailing view in markets is that the COVID-19 epidemic will have long-lasting negative effects in particular on emerging economies, which could see a rise in corporate and sovereign defaults. In Ukraine-related news, the government announced that it is targeting another large national budget deficit of 6% of GDP in 2021 after the expected deficit of 7.5% this year. The Finance Ministry is in the process of preparing the budget for presentation to Parliament.