This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
April 12, 2013 /PRNewswire/ --
Lower interest rates for Ukrainian Eurobonds indicate that international investors see
Ukraine as a reliable borrower. This was stated by
Ukraine-based experts when commenting on the 7.5 percent interest rate on the recent placement of bonds worth
USD 1.25 billion vs. 7.8 percent interest rate for
November 2012 Eurobonds issue, as reported by unian.net.
The sufficient funds
Ukraine managed to attract on the international markets provide for the stability of the national currency - hryvnia, stated the head of the Forex Club analytical center,
Mykola Ivchenko. The
April 2013 bonds were placed at 7.5 percent interest rate, which is lower than 7.625 percent for
February 2013 placement of
USD 1 billion worth of bonds, and much lower than 7.8 percent for the
November 2012 placement of
USD 1.25 billion worth of bonds. Thus, in less than six months' time the borrowing rates for
Ukraine went down 0.3 percent, explained the expert.
"The fact that we [
Ukraine] regularly pay off all the debts has positively influenced the situation.
Ukraine without delay pays back external and internal loans, Eurobonds, IMF loans, and promptly pays for Russian gas," he added. The chief economist of the Dragon Capital investment company
Olena Belan reiterated that the recent Eurobonds issue would provide the Ukrainian government with the funds necessary for the upcoming IMF loan redemption.
"The weighted average yield level for yesterday's [
April 10, 2013] placement was 12.5 percent lower than that of
February 4, 2013, which indicates investors' high appetite for Ukrainian credit risk," stated Belan. She added that the expected progress in
Ukraine's relations with the IMF may have resulted in the successful Eurobonds placement. The amount of attracted funds -
USD 4.7 billion, eliminates economic and financial risks for
Ukraine even if the country does not receive another IMF loan, commented the experts.
Ukraine is negotiating a new loan from the IMF. The Eastern European country is counting on a
USD 15 billion loan under the stand-by program, which was suspended in
December 2010. In order to unlock further disbursement,
Ukraine needs to change its domestic policy; namely, increase gas and heating prices for households.
SOURCE Worldwide News Ukraine