Ukraine plans to float bonds on the international market in the second half of 2017, according Finance Minister Oleksandr Danylyuk. The former Soviet nation has been fighting a multitude of problems which has caused severe economic contraction over the last several years and an extreme devaluation of the currency. The recent approval from the International Monetary Fund to release an additional $1 billion in aid from the $17.5 billion aid package has given Kyiv a shot in the arm and given confidence that they could successfully raise money from international investors.
“We need to meet investors, restore confidence in the government, in the country,” Danylyuk said at a conference in Kiev, reported Yahoo Finance.
The government of Petro Poroshenko is at a critical juncture as the war with pro-Russian separatists continues to smolder in the east of the country and corruption at home still remains endemic. On top of these problems, a blockade by Ukrainian patriots of rail lines into Donbass has further shaved economic growth from the year’s results.
If Ukraine could access international markets it will provide a safety valve if the IMF decides Ukraine has not made enough progress for further funds to be released. Of course, everything depends on the interest rate the bond market will offer to the Bank of Ukraine upon issuance of the securities.