Ukraine redeems USD 1 bln in U.S.-guaranteed Eurobond

Ukraine’s Finance Ministry redeemed the USD 1 bln
issue of U.S.-guaranteed bonds issued in 2014 at 1.844% on May 16, the
Interfax-Ukraine news agency reported on May 17, citing the Finance Ministry.

Evgeniya Akhtyrko: This is one
of Ukraine’s several major repayments on foreign debt in 2019. As we estimated earlier, this
expenditure will result in gross international reserves depleting by around 5%
in May. Given the negative current account balance and weak FDI inflow, this
loss in not likely to be replenished without receiving a new tranche loan under the Ukraine-IMF Stand-By
Arrangement. In June-December 2019, Ukraine is to repay around USD 0.9 bln to
the IMF. In addition, it is to redeem USD 0.7 bln in Eurobonds in September.