Ukraine managed to secure a long-awaited loan worth about $700mn from the IMF earlier this week. While the loan deal was secured last year as the country fell into recession, the disbursement was delayed on the back of concerns over reforms and independence of its central bank. Ukraine President Volodymyr Zelenskiy said via a tweet that his government plans to use the funds to support the financial system and to combat pandemic-related consequences. The IMF also extended its $5bn stand-by programme for the country until June 2022. The country’s dollar bonds however have been under pressure this week over escalating tensions with Russia as the Putin-led government ramps up its military troops at the border.
Ukraine’s USD 7.375% 2032s are trading over 5 points lower this week to 95.15 cents on the dollar, now yielding 8.09%.
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