18:44 27.05.2019

No preconditions for default – bankers

1 min read
No preconditions for default – bankers

There are no prerequisites for a default on Ukraine's sovereign obligations, experts polled by Interfax-Ukraine believe.

"If to ignore the minor fluctuations in the yield of Ukraine's eurobonds, the market has hardly responded to this statement, which means that the market assesses the likelihood of the second default as low," Andriy Prykhodko, the head for investor relations at Bank Credit Dnipro.

The chief economist at Alfa-Bank Ukraine, Oleksiy Blinov, adheres to a similar point of view.

"There are no grounds for default on sovereign obligations today. Ukraine just successfully passed the peak of payments on foreign debt in May and is financially ready for the next peak of payments in September," he said.

Blinov added that since the beginning of 2019 the government and the NBU have paid $5.6 billion on foreign currency debts without any difficulties, the level of forex sufficiency exceeds three months of imports of goods and services, and net foreign exchange reserves exceed $9 billion.

"This fully covers all debt payments for a year ahead. For comparison, at the beginning of 2015 [on the eve of foreign debt restructuring] net foreign exchange reserves were zero," he added.

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