Ukraine Bonds Slide as Budget Fails to Ease Financing Concerns - Bloomberg

Ukraine Bonds Slide as Budget Fails to Ease Financing Concerns - Bloomberg:



"Ukrainian bonds slid the most in three weeks after approval of the 2015 budget failed to temper concern the financial crisis that’s dragged the country into a recession will worsen.



The price on the government’s dollar-denominated note maturing July 2017 dropped 4.6 cents, the most since since Dec. 10, to 60.03 cents on the dollar by 5:28 p.m. in Kiev. The yield on the notes rose 3.8 percentage points to 33.75 percent, approaching the record 34.17 percent close from Dec. 16. The hryvnia appreciated 0.2 percent to 15.7960 against the dollar, trimming its world-beating loss this year to 48 percent.



While the approval of next year’s budget yesterday marks a step toward unlocking future tranches of the International Monetary Fund-led $17 billion loan, Ukraine’s ability to ward off a default was curtailed as foreign-currency reserves halved in 2014 to $9.97 billion. The country’s economy is forecast to shrink 7.5 percent this year amid the conflict with eastern separatists and Russia’s takeover of Crimea."



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