Fixed Income

December 02, 2019

Ukrainian sovereign Eurobonds ended lower last week amid a lack of clarity about whether the current USD 3.9bn stand-by arrangement with the IMF that expires in January will be replaced with a new program. IMF mission Head Ron Van Rooden said that he had constructive discussions with Ukrainian representatives during his recent visit, but that more discussions in the near future are needed for signing a so-called staff-level agreement to pave the way for a new loan deal. The longest outstanding sovereign issue, Ukraine-32s, decreased by 0.9% to 100.7/101.5 (7.3%/7.2%), and the medium-term benchmark Ukraine-24s shed 0.5% to 110.0/110.8 (6.3%/6.1%). The VRI derivatives (linked to Ukraine’s future GDP growth with expiration in 2040) declined by 0.5% to 91.5/92.5 cents on the dollar.