16 July 2010
The Ministry of Finance issued a press release this morning stating that Ukraine will not place Eurobonds in 3Q10 as planned. The ministry held a road show last week and was seeking to place USD 2 bln in 10-year bonds. The release indicated the government might revisit the issue, but with an eight or nine-year maturity. Most likely, the government will now prolong its USD 2 bln bridge loan from Russia’s VTB Bank, which was originally taken for 6 months at 6.7% with the possibility of an up to two-year extension. The Ministry of Finance counted on USD 1.3 bln in Eurobonds to cover part of its fiscal deficit in 2010.