Fixed Income

August 31, 2020

Ukrainian sovereign Eurobonds finished moderately lower last week amid a generally dry news flow ahead of the start of the more active business season in September. Meanwhile, the government reported that the country’s public and guaranteed debt increased by just USD 680mn to USD 85.0bn since the start of the year. Ukraine’s foreign debt was estimated at USD 52.5bn at the beginning of August, accounting for 62% of the total state and guaranteed debt. The Finance Ministry has to pay some USD 5.8bn for servicing the country’s debt, including roughly USD 2.4bn in September for the redemption of Eurobonds and coupon payments on the outstanding issues. Taking into account that the National Bank’s foreign currency reserves are hovering near USD 29bn, the debt repayments are not a threat to Ukraine’s solvency.