Ukraine Default Jitters Mount One Year After Crisis Began - Bloomberg

Ukraine Default Jitters Mount One Year After Crisis Began - Bloomberg:



"Almost one year after the Maidan Square demonstrations began in central Kiev, Ukraine’s record-high borrowing costs are showing how difficult the path toward Europe has become.



The yield on Ukraine’s dollar-denominated note due in July 2017 rose 1.49 percentage points to a record 17.63 percent yesterday, almost quadruple the average borrowing cost for emerging markets. The cost to insure the nation’s debt against non-payment shows a 63 percent probability of default within five years, according to CMA.



From the ousting of former President Viktor Yanukovych in February amid protests that pushed Ukraine toward closer ties with the European Union to Russian President Vladimir Putin’s annexation of Crimea a month later and the separatist uprising in the nation’s east, bondholders have been rocked by turmoil that has deepened the country’s political and economic crises. The hryvnia weakened to a record yesterday as NATO accused Russia of sending troops and heavy weapons into Ukraine."



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