Ukraine plans an additional sale of Eurobonds this year
Ukraine plans an additional sale of Eurobonds this year, the government said in an amendment to the draft state budget law, published on parliament’s website today.
The bill envisages the sale of Eurobonds equivalent to
20.29 billion hryvnia ($2.5 billion) by the end of this year, according to the materials. Ukraine has sold $2.8 billion in Eurobonds in 2011.
"Given the current market conditions, it will be very difficult for the government to raise $2.5 billion by the end of the year," Olena Bilan, chief economist at Kiev-based Dragon Capital, said by phone. "It means that the $2 billion loan from Russian VTB Group will be at least partially prolonged into 2012, effectively increasing borrowing needs next year."
The Cabinet plans to issue Eurobonds equivalent to 28.35 billion hryvnia ($3.54 billion) in 2012 to finance the state budget, the government said in material accompanying the state budget bill. Total foreign borrowing will be 37.5 billion hryvnia next year, according to the state budget draft.