Fixed Income

December 21, 2020

Quotes for Ukrainian sovereign Eurobonds stayed on the rise last week, but the pace of gains finally slowed from the bullish level which has been seen since early November. In major recent events, Parliament passed the national budget for next year in the final second reading. Although the deficit is projected at 5.5% of GDP, it seems that the lower interest rates both domestically and abroad should allow the government to fill the gap which, in a nominal amount, is estimated at UAH 247bn (USD 8.5bn). In developments related to Ukrainian cooperation with the IMF, the Washington-based lender will hold talks with the Ukrainian authorities this week for a review of country’s USD 5bn loan program, marking a breakthrough after months of delay.