Fixed Income

October 02, 2018

Ukrainian sovereign Eurobonds last week remained within the narrow trading boundaries that prevailed during most of September. An absence of a final decision from the IMF regarding continuation of the existing support program placed some uncertainty on sustainability of Ukraine’s overall USD 74.9bn outstanding public debt. The government continues to hesitate on key reform requirements, and there were rumors that Kyiv has asked the IMF for a possible repackaging of undrawn funds from the existing USD 17.5bn Extended Fund Facility (EFF) agreed in 2015 into a USD 5-6bn Stand-By Arrangement, which would represent a de-facto reduction in the program scale. Ukraine has received USD 8.4bn from the IMF so far under the EFF. In major political developments, President Poroshenko reportedly had a one-on-one meeting with his US counterpart Donald Trump at the UN General Assembly in New York which lasted around 20 minutes. No details about the meeting’s content have been made public.