Fixed Income

February 19, 2018

Ukraine’s sovereign Eurobonds recovered some of the preceding week’s losses as global risk appetite appeared to rebound after investors had seemed to panic over the likelihood of higher US interest rates. Locally, news that a number-crunching mission from the IMF has arrived in Kyiv encouraged the optimistic theory that the country will remain in the loan program, which is due to expire in March 2019. Prime Minister Volodymyr Groysman met with the mission’s head Ron van Rooden last Monday (Feb 12) to discuss legislation on the anti-corruption court, but the timing of a new loan disbursement has not yet been set In economic data, UkrStat announced that the country’s GDP grew by 1.8% YoY and 0.4% QoQ in 4Q17. Although the figures do not look impressive, it should be noted that there is a negative bias in the comparison base due to the inclusion of part of the economic output of the Donbass occupied territories in the 4Q16 data (since March 2017, such output has no longer been counted).