Ukrainian Bonds Slump as Russia Mulls Seeking Early Repayment - Bloomberg

Ukrainian Bonds Slump as Russia Mulls Seeking Early Repayment - Bloomberg:



"Ukrainian bonds extended the third week of declines after Russia said it may demand an early repayment of a $3 billion bailout loan it gave its neighbor before relations before the two countries disintegrated.



The yield on Ukraine’s Eurobonds due July 2017 climbed 14 basis points to 15.41 percent at 4:51 p.m. in Kiev, approaching a record 16 percent reached on Feb. 19. Russia has an option to call early its bailout bonds, which mature in December 2015, if Ukraine’s debt tops 60 percent of gross domestic product.



The weakness of the hryvnia, which lost 36 percent against the dollar this year, indicates the debt threshold has been breached, Finance Minister Anton Siluanov told reporters in Moscow today. Russia is awaiting third-quarter data before deciding whether to trigger the early payback clause, he said. His Ukrainian counterpart, Oleksandr Shlapak, said on Sept. 23 his country may ask the International Monetary Fund for additional aid next year."



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