18:42 24.07.2018

Ukraine plans to enter foreign markets with euro- and hryvnia-pegged bonds

2 min read
Ukraine plans to enter foreign markets with euro- and hryvnia-pegged bonds

The Finance Ministry of Ukraine plans to expand the range of debt tools offered to international investors, expanding eurobonds pegged to U.S. dollars with bonds pegged to euros, hryvnias and maybe other currencies, acting Finance Minister of Ukraine Oksana Markarova has said.

"We will expand our borrowing. We will look not only at the U.S. dollar, but also the euro. We did not use it for a long time. We will add other, slightly exotic currencies," she told Interfax-Ukraine.

The minister said that the government plans to borrow more actively in the hryvnia, since today the share of foreign currency liabilities of the public debt is excessively high, reaching 70%.

"In fact, we have already completed all the procedures to go out with hryvnia tools to foreign markets, and I think this will also have a big effect on increasing the hryvnia portfolio of our bonds," she said.

Markarova said that the government plans to be more active in the domestic market.

"I hope that stability will help us convince all banks, because most banks with foreign capital do not even have limits on the purchase of Ukrainian securities," she said.

She recalled that Ukraine has the ninth quarter of constant growth.

"Our task is to convince them of macroeconomic stability with a properly accepted budget and convince them to be players in this market," Markarova said.

According to her, at present, work to update the strategy of public debt management is underway.

The finance minister also confirmed that Ukraine, as before, plans to enter the foreign loan markets this year. She recalled that the budget provides for borrowing in the amount of $2 billion, but the final amount also depends on two other sources of financing the deficit of the budget - $ 800 million from the World Bank and EUR 1 billion of macro-financial assistance from the European Union.

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