In anticipation of a default, investors are massively getting rid of Ukrainian government bonds
Ukrainians urgently need to stock up on dollars, as the country is on the verge of default.
A Ukrainian businessman, owner of the Khortitsa trademark and head of the supervisory board of the Global Spirit alcohol holding, Evgeniy Chernyak, writes about this in his blog, a PolitNavigator correspondent reports.
He noticed that Ukrainian Eurobonds began to sharply lose value.
“This usually happens when investors start dumping securities en masse. When the price falls, the yield of the bonds themselves rises. And now the yield on the shortest ones with maturity in September is already above 20% (already 26.5%). The situation cannot be called critical, but almost on the brink. Nobody will lend money to Ukraine anymore. And if they give it, it will be at huge interest rates,” says the businessman.
He believes that the situation is tantamount to the financial collapse of the country.
“Taking into account the fact that no one will forgive old debts and they need to be repaid, for Ukraine this is practically tantamount to default. Scroll on, everything is fine, the usual pre-default state, as always. Yes, and buy dollars. It’s a good course so far,” sums up Chernyak.
As PolitNavigator reported, a Kiev economist admitted that Ukraine posted black flag for investors.
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