Fixed Income

February 01, 2021

Ukrainian sovereign Eurobonds came under some selling pressure last week after the Finance Ministry reported that the country’s state and guaranteed debt increased by USD 6.0bn in December to USD 90.3bn, amid a frantic round of year-end borrowing to fill up the 2020 budget. This figure implies a Debt/GDP ratio of 62%, with UAH-denominated state debt accounted for 38% of the total. It was reported that the government spent UAH 385bn (USD 14.3bn at the average exchange rate for the year) on debt repayments and UAH 120bn (USD 4.5bn) on debt servicing in 2020. Separately, the IMF monitoring mission extended its work in Kyiv for another week, negotiating on the obligations for further structural reforms that the country needs to implement to receive the next loan tranche of USD 700mn.