Ukrainian Eurobonds due 2023 jumped to a two-month high as the country won an International Monetary Fund bailout.
The price on the sovereign notes rose 1.6 percent to 89.86 cents on the dollar by 11:57 p.m. in Kiev, set for the highest close since Jan. 28 and cutting the yield 25 basis points to 9.17 percent, according to data compiled by Bloomberg. The Ukrainian Equities Index jumped 1.4 percent.
Ukraine will receive $14 billion to $18 billion of loans from the IMF over the next two years after the government takes steps to “stabilize the economy,” the Washington-based lender said in an e-mailed statement today. The bailout is designed to avert a default as the country grapples with a widening current-account deficit and shrinking foreign reserves.
“The IMF program news is slightly better than expected,” Fyodor Bagnenko, a fixed-income trader at Dragon Capital in Kiev, said by e-mail today. “A two-year program also means an accelerated path of disbursements and fairly quick economic reforms, which will likely be preconditions for each tranche.”
The hryvnia weakened 0.9 percent to 11.25 per dollar, after reaching the lowest intraday level on record yesterday at 11.325, data compiled by Bloomberg show.
© Copyright 2022 Bloomberg News. All rights reserved.