Bonds of Ukraine has dropped in price after the news about the negotiations with creditors

The cost of Ukrainian bonds maturing in July 2017 fell by 3, 9 cents to a record low of 52, 95 cents per dollar after the message about the intention of Kiev to meet With creditors in order to increase medium-term debt sustainability ", informs Bloomberg.
Since the beginning of the month the bonds lost 5, 8%. Their rates include expectations of a grace period and even reduce the principal amount, said Lutz Rodemeyer from LBB Invest. According to him, if the market had expected only installment in 3-5 years, the cost would have to be above 80 cents, according to news Agency ". Manager Aberdeen Asset Management Max Wolman told the financial times that the announcement of the negotiations, on the one hand, is positive, because it supposes that the settlement provisions on the reverse side, it means the prospects of losing money investors in this or another form." The risk in any decision is will be whether it is necessary, " he said. Finance Minister of Ukraine Natalia said at a meeting With the managing Director of the international monetary Fund Christine Lagarde in Davos said that Ukraine will hold a meeting With creditors in order to increase the medium-term debt sustainability. As said Yaresko, meetings have the opportunity to start next month - after negotiations With the international monetary Fund about the transition from open in spring 2014 program stand-by for no less than long-term and large-scale extended credit facility EFF (Extended Fund Facility). It is assumed that the dialogue With the IMF mission will be completed before the end of next week. In the statements of Ukrainian individuals are not informed that the dialogue With creditors will relate to sovereign debt restructuring. At the same time most experts over the past period of time noted the vulnerability of the external debt position of Ukraine, the reflection of which are high-yield sovereign Eurobonds of the country, taking into account the significant probability of debt restructuring. In this regard, experts believe that the creditors in number which includes Russia, have the opportunity to be must agree to extend their maturities and reducing interest payments to avoid default of Ukraine. First Jaresko said that Ukraine is now in a desperate financial situation and wants to go With complaints to Western partners. The head of Ukraine Petro Poroshenko 12 January said that Kiev will be required for 2 years of additional financial assistance from external sources totaling More than 13-15 billion.


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sections: Politics