Fixed Income

January 28, 2019

Quotes for Ukrainian sovereign Eurobonds rose for a third straight week, although at a more moderate pace, as it appeared that President’s Poroshenko visit to the World Economic Forum in Switzerland made a positive impression on investors in terms of his chances to win reelection this spring. The presidential press service said that during the two days of Poroshenko’s visit to Davos, about 20 official meetings had taken place, including talks with German Chancellor Angela Merkel. Shortly afterward, the IMF released a statement that seemed to support Poroshenko’s candidacy against left-wing populist Yulia Tymoshenko, who has indicated that she would cut off Ukraine’s IMF cooperation. In separate news, the Finance Ministry said that the government attracted a total of USD 3.56bn in new debt in December, increasing the country’s public debt to USD 78.3bn. We estimate that Ukraine’s debt-to-GDP ratio now stands near 60%.