Fixed Income

September 16, 2019

Sovereign and corporate Ukrainian Eurobonds saw some profit-taking last week, correcting moderately after their sharp rally on the appointment of the new technocratic government in the country at the end of August. Meanwhile, news that an IMF mission arrived in Kyiv and started talks on a new cooperation program for Ukraine was already expected and failed to impress the market. Fighting corruption will be a key component of any new lending program Ukraine gets with the IMF, the organization’s official spokesman said in a Sept 12 briefing in Washington. The country has a tough debt repayment schedule for 2020-2022 and therefore has a pressing need to replace the current USD 3.9bn standby arrangement with the IMF, which expires at the end of the year, with a longer-term program.