Ukraine Bond Rally Hangs in Balance on Budget Showdown

2014/7/31 12:53:14

While the IMF bailout in May prompted investors to send the yield on Ukraine’s April 2023 bond down more than 3 percentage points from a February peak of 11.37 percent, the rate has risen over the past week. The reversal occurred as Yatsenyuk submitted his resignation on July 24 after failing to win the funds needed for battling the separatists, and as the downing of a Malaysian Airlines jet triggered fresh sanctions against Russia by the European Union and the U.S.

 

 


From Bloomberg 31 July 2014

 

Ukraine Prime Minister Arseniy Yatsenyuk’s second attempt to steer an emergency budget through parliament will determine whether the government runs out of money as a two-month bond rally stalls.

 

Lawmakers are scheduled to vote today in Kiev on financing bills they rejected last week. The cash is needed to help qualify for the next installment of an International Monetary Fund loan and to press a government offensive against pro-Russia rebels in the east, Yatsenyuk said. Without the funds, Ukraine risks a default, he said on July 28.

 

For full text, Link below

http://www.bloomberg.com/news/2014-07 ... n-east-europe-credit.html

 

photo courtesy of article source

 

 

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