Ukraine is set to re-enter the global bond market in a big way.
Since being for all intents and purposes locked out of the eurobond market for some time, the Eastern European country is now able to borrow again.
Ukraine is preparing to ramp up its borrowing, its new acting finance minister told Reuters on Monday, with plans to restart bond issuance in euros and look at issuing debt in currencies such as China’s yuan for the first time. Oksana Markarova said the country would borrow in dollars but also step up issuance in its domestic currency as it looks to manage hefty debts and reduce its sensitivity to exchange rates, which arises from much of its borrowing being dollar-denominated. “We will be trying to intensify … the issues internally, especially in Ukrainian currency,” she said in an interview. “It’s been a while since we issued in euros … but we might even explore other markets as well,” reported Reuters.
Ukraine has been struggling to secure additional tranches of the $17.5 billion aid package offered by the International Monetary Fund. Recent passage of the law, and amendments, authorizing the creation of the anti-corruption court is loosening the purse strings of international donors and investors. Ukraine still has a massive corruption problem which is strangling its oligarch economy.
Asked whether this could include the Chinese yuan, she said it was something the country was looking at. “It might,” she said, adding that it wouldn’t happen this year…A euro issuance could come this year, depending on market conditions, Markarova said, but issues in other currencies like the yuan are further into the future.
Minister of Finance Oksana Markarova stated recently she expects further aid to be disbursed by international partners after further privatization and anti-corruption measures are passed.