Bloomberg: Ukraine Bonds rally as premier quitting clears way for overhaul

Ukraine`s bonds rose the most in a month after Prime Minister Arseniy Yatsenyuk resigned, boosting speculation a new cabinet will help end two months of infighting and pave the way for resuming international aid payments, Bloomberg reported.
The yield on the eastern European nation`s $1.65 billion note due September 2019 fell 26 basis points to 9.70%, the biggest drop since March 4, according to Bloomberg.
Ukraine`s Eurobonds have underperformed developing-nation peers this year amid political wrangling and failure to overhaul the tax system, changes required by the International Monetary Fund for disbursements from its $17.5 billion loan, according to the report.
As reported earlier, Yatsenyuk, who took office in 2014, quit Sunday after weeks of pressure from coalition members. Lawmakers may approve a new cabinet and government program this week, said Parliament Speaker Volodymyr Groysman, nominated by President Petro Poroshenko`s party to replace Yatsenyuk.
”Markets would prefer to wait for particular ministerial appointments which would be crucial for understanding the mandate and the reform agenda of new cabinet,” said Gintaras Shlizhyus, an analyst at Raiffeisen Bank International AG in Vienna, according to Bloomberg.
”We do not expect a quick relief rally this time while the new government would still face a challenging task of pushing the necessary legislation through the parliament and implementing necessary steps for receiving the next tranche of the IMF loan,” Shlizhyus said.

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