Ukraine took hundreds of millions of dollars at high interest rates

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Photo: Valentyn Ogirenko / Reuters

Ukraine’s Finance Ministry placed short-term bonds of external state loans with a maturity in 2019 to $ 725 million dollars. This is stated in the message Department.

“The bonds were placed among the leading international investors who have provided the financial support to Ukraine in the conditions of instability of the international capital market for developing countries”, — said the press service of the Ministry of Finance.

Officials believe that this will allow Ukraine to meet its short-term need for foreign exchange liquidity and to benefit from flexible conditions of attracting funds.

Managing partner of investment company Capital Times Eric Naiman called placement of Ukrainian securities to internally, according to RIA Novosti. According to him, the money was taken by “unrealistically expensive” the interest of 9.10-9.15 percent per annum.

Strategist for emerging markets at Bluebay Asset Management Tim ash noted that the borrowing will allow Ukraine to reach before receiving the next tranche of the International monetary Fund (IMF).

In August, Ukraine was unable to obtain from the IMF tranche in the amount of $ 1.9 billion that has blocked the possibility of financial assistance from other parties. The reason is that one of the conditions for receipt of funds — increase in gas prices for population by one — third- were not fulfilled.

Video, photo All from Russia.



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