The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Ukraine’s bonds rose the most in a month after Prime Minister Arseniy Yatsenyuk resigned, boosting speculation a new cabinet will help end two months of infighting and pave the way for resuming international aid payments.
The yield on the eastern European nation’s $1.65 billion note due September 2019 fell 26 basis points to 9.70 percent, the biggest drop since March 4. Yatsenyuk, who took office in 2014, quit on Sunday after weeks of pressure from coalition members. The hryvnia strengthened for a fifth day.
Ukraine’s Eurobonds have underperformed developing-nation peers this year amid political wrangling and failure to overhaul the tax system, changes required by the IMF for disbursements from its $17.5 billion loan. Lawmakers may approve a new cabinet and government program this week, said Parliament Speaker Volodymyr Hroisman, nominated by President Petro Poroshenko’s party to replace Yatsenyuk.
“It’s a half step forward toward meeting the goal of returning the country on track of reforms and sustainable growth,†said Tantely Ratovohery, an analyst at Empire State Capital Partners in Kiev. The announcement brings an end to the protracted struggle for the survival of the parliamentary coalition and for the post of PM, he said. While Finance Minister Natalie Jaresko completed a $15 bn bond restructuring with foreign investors including Franklin Templeton in November, meeting a key condition of the IMF’s bailout, the program has since stalled as the Washington-based fund waited for the reforms and officials in Kiev to present an economic
programme.
Ivan Miklos, the former Slovakian Finance Minister who has been touted to replace Jaresko in the new cabinet won’t be joining the country’s government, Ukrayinska Pravda newspaper
reported on Monday.