Ukraine Borrowed More Than $700 Million at a High Interest Rate
OREANDA-NEWS The Ministry of Finance of Ukraine has placed short-term bonds of foreign government loans with maturity in 2019 for 725 million dollars. This information reported Ministry of Finance of Ukraine.
"The bonds were placed among the leading international investors who provided financial support to Ukraine in the conditions of instability of the international capital market for developing countries," noted the press service of the Ministry of Finance.
Officials believe that this will allow Ukraine to meet its short - term needs for currency liquidity, as well as to benefit from flexible conditions for raising funds. Bloomberg warned about the threat of financial chaos in Ukraine.
Eric Nyman — managing partner of the investment company Capital Times called the placement of Ukrainian securities forced. According to this information, the money was taken under "unrealistically expensive" interest — 9,10-9,15 percent per annum.
Securities with a maturity of up to 2019 have been listed on the Vienna stock exchange. The funds will be sent to the budget.
Tim Ash — Strategist for emerging markets at Bluebay Asset Management noted that the borrowing will allow Ukraine save its financial position before receiving the next tranche of the International monetary Fund (IMF).
The four-year IMF assistance program provides for the allocation of $ 17.5 billion to Ukraine. From 2015 to 2017, Kiev received four tranches for more than eight billion. The fifth tranche of the Ukrainian authorities expected to be received by the end of 2017 or in 2018.
In August, Ukraine was unable to receive a $ 1.9 billion tranche from the IMF. It blocked the possibility of financial assistance from other parties. The reason is that one of the conditions for obtaining funds — an increase in the price of gas for the population by a third — remained unfulfilled.
Earlier VOX Ukraine noted that in order to repay the external debt of Ukraine, each resident of the country must pay 1800 dollars.
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