Ukraine's debt
Ukraine's government bonds tumbled to fresh lows Tuesday (24. 09. 2013), narrowing the cash-poor country's options for financing its debt and its spending, and pushing it closer to a bailout from the International Monetary Fund.
On Tuesday, a 10 -year dollar-denominated government bond hit a yield of about 10. 5%, according to Tradeweb, up from 9. 64% on Monday. That bond yielded around 7. 5% when it was issued in April. Yields rise when prices fall. Yields on Ukrainian debt have moved even higher on short-term bonds—a warning signal that investors are deeply concerned.
ce n tr al -b an k bu ild Through the end of 2014, Ukraine's government must pay about $10. 8 billion to service foreign-currency-denominated debt, including interest payments, according to Moody's Investors Service. But as of July, Ukraine had only $1. 8 billion in cash in its coffers, according to Moody's, which late Friday downgraded Ukraine to Caa 1—deep in "junk" territory. The government is running a budget deficit of about 5% of economic output. $10. 8 billion + % He ad off ice of in g in Ki ev IM FW ash ing to n. D C in U SA
Ukraine's last IMF lending program was frozen in 2011 after the government refused to increase household gas prices, which it heavily subsidizes. In an interview broadcast Monday with Russian state news channel Rossia 24, Ukrainian Prime Minister Mykola Azarov said he hoped the IMF would change its conditions for new lending— adding that he "can't place the burden of unjustified gas prices" on the public.
"The world is large. If we don't reach an agreement with the IMF, we'll take [loans] elsewhere, " Mr. Azarov said, without elaborating.
I hope that our government can receive all problems, if not, I hope that we can change something in this country. At first it will be a government.
Thank you For your attention
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