OREANDA-NEWS. August 5, 2010. First Deputy Finance Minister Vadym Kopylov and Tax Administration Head Alexandr Papaika said, in separate comments, that the issuance of special sovereign VAT bonds could be completed in August and total UAH 16-17 bln (USD 2-2.2 bln), in line with the previous estimates. The issuance is to be made in three or four tranches; the first tranche of UAH 49 mln was disbursed on August 2. The second tranche could be issued between August 10-12 for some UAH 3 bln (USD 0.4 bln).

Concorde Capital: we see the yields on these UAH bonds, above 15%, as attractive on the back of eased fiscal deficit financing and UAH exchange rate risks after fiscal consolidation steps by the government in July and the IMF’s approval of the new USD 15 bln standby facility for Ukraine and disbursement of its first USD 1.9 bln tranche last week.