Ukraine hopes to wait for Russian bond market concerns

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LONDON, Dec.9 (Reuters) – Ukraine hopes to wait for the current market turmoil fueled by fears of a Russian invasion before appealing to international capital markets again, the debt management official said on Thursday. from the country.

Ukraine has a $ 1 billion refinancing deadline in September, but government bond yields – a proxy for what it would have to pay to borrow – have risen following a series of rate hikes. interest and an accumulation of Russian troops near its borders.

“We have most of the year to monitor the market,” Yuriy Butsa, Ukrainian government commissioner for public debt management, told Reuters.

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“As we showed last year, we are actually very quick to act if market conditions are right. We will be really opportunistic.”

Ukraine’s central bank raised interest rates again on Thursday in an attempt to control inflation and stabilize the country’s currency, which has collapsed amid geopolitical tensions with Moscow. Read more

The country, which saw its Crimea region annexed by Russia in 2014, relies heavily on international support and must secure a new IMF program next year when its current $ 5 billion facility ends in June.

But to secure the loan, the IMF said Ukraine must stick to reforms, protect central bank independence and maintain fiscal discipline. Read more

“We don’t have an ongoing discussion about the new program until we finalize this one,” Butsa said, adding that it could start to be discussed during the final review of the current program next year.

He added that Kiev had formally requested new funds to support the European Union, but a decision could take some time.

“I think there are other countries, neighboring countries, which will probably also be interested in the same form of support. So I do not exclude that it could be a joint initiative of the EU, ”Butsa said.

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Ukrainian bonds indexed to GDP

Reporting by Marc Jones Editing by Nick Zieminski

Our Standards: Thomson Reuters Trust Principles.


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