The MoF could return to the markets in a year



1 декабря 2015 года
ICU

Deputy Minister of Finance Artem Shevaliov declared yesterday at the macroeconomic conference in Kyiv that the MoF could decide its return to the international capital markets at the end of 2016 or beginning of 2017. This step should be discussed with the IMF if there are economic reasons for new borrowings.

Investment implications: This declaration is based on the completion of a successful debt restructuring and other positive developments. However, there are currently complications in receiving the third tranche from the IMF and market conditions are not acceptable for new issues. With spreads to the benchmark in the range of 650-700bp, Ukraine's YTMs are now significantly above those of other countries with similar credit ratings and higher current coupon rates. Spreads should tighten to about 550bp, which, with additional market volatility prior the issuance and new-issue premium, could result in coupon rate of about 7.75% or lower. Because of this, such declarations are very optimistic. Ukraine still needs to improve more significantly, implementing reforms and be in line with the IMF's EFF program.

Источник: ICU

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