Western investors dump all Ukrainian securities
Kyiv, February 21 (Navigator, Denis Andreev) – Against the backdrop of the tense situation in Ukraine, Western investors began to dump its debt securities, doubting the state’s ability to pay them off, writes the Capital newspaper.
Subscribe to the news “Navigator - Kiev” >>>
Yesterday evening, the yield on the shortest Eurobonds maturing in 2014 exceeded 30,56% per annum, and with maturing in 2015 – 18,26% per annum. Since the protests began in November, these rates have almost tripled.
Dmitry Churin, an analyst at the investment company Eavex Capital, believes that it is premature to talk about Ukraine’s sovereign default, but the likelihood of great difficulties in servicing external obligations now really exists.
“According to our estimates, the amount of total payments by the Ukrainian government to the International Monetary Fund in February-April is about $1 billion. In addition, approximately $200 million during the same time must be spent on servicing interest on Eurobonds,” he said.
On the other hand, the high yield of Ukrainian securities has attracted speculators: if the situation stabilizes, they will be able to get a very large sum. The largest holder of Ukrainian government bonds is the American investment fund Franklin Templeton. According to Bloomberg, the volume of Ukraine's public debt under his management in the fourth quarter increased by $252 million at face value. Now he controls securities totaling $6,4 billion, which is more than a third of their entire issue.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.