April 12, 2013
Lower interest rates for Ukrainian Eurobonds indicate that international investors see
as a reliable borrower. This was stated by
-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
Eurobonds issue, as reported by unian.net.
The sufficient funds
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,
bonds were placed at 7.5 percent interest rate, which is lower than 7.625 percent for
USD 1 billion
worth of bonds, and much lower than 7.8 percent for the
USD 1.25 billion
worth of bonds. Thus, in less than six months' time the borrowing rates for
went down 0.3 percent, explained the expert.
"The fact that we [
] regularly pay off all the debts has positively influenced the situation.
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
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
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
even if the country does not receive another IMF loan, commented the experts.
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
. In order to unlock further disbursement,
needs to change its domestic policy; namely, increase gas and heating prices for households.
SOURCE Worldwide News Ukraine