16 Декабря 2019

Ukraine’s sovereign Eurobonds moved sharply higher last week as quotes reflected the prior weekend’s announcement from the IMF about conditionally agreeing to lend the country USD 5.5bn over the next three years. An agreement with the IMF is seen as important to attracting foreign investment. Meanwhile, the Normandy summit in Paris on Dec 9 did not bring any major breakthroughs for the Kyiv-Moscow relationship. At a closing press conference, President Zelenskiy and Russian President Putin, who met face to face for the first time, clashed over the issue of border control and the question of Donbass municipal and provincial elections. Still, both Zelenskiy and Putin insisted that the talks were fruitful and would lead to more concrete progress in the months ahead. The medium-term benchmark Ukraine-24s jumped by 2.0% to 108.2/109.0 (6.8%/6.6%), and Ukraine-32s, the longest outstanding sovereign issue, shot up by 3.7% to 103.3/104.0 (7.0%/6.9%). The VRI derivatives (linked to Ukraine’s future GDP growth with expiration in 2040) added a solid 4.0% to 93.6/94.6 cents on the dollar.