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8 months ago
Ukraine dollar-bonds jump after government nationalises PrivatBank
December 19, 2016 / 9:11 AM / 8 months ago

Ukraine dollar-bonds jump after government nationalises PrivatBank

LONDON, Dec 19 (Reuters) - Ukraine's dollar-denominated bonds jumped by more than 1 cent on Monday after the government said it would nationalise the country's biggest lender, PrivatBank.

Longer-dated maturities chalked up the biggest gains, with the 2027 and the 2026 issues jumping more than 1.3 cents, according to Tradeweb data.

Shorter-dated bonds added around 0.8 cents.

Ukraine declared PrivatBank insolvent and said bringing it under state ownership was the only way to protect the money of 20 million Ukrainian clients and stave off threats to the financial system.

"It seemed quite clear for some time that the government had to do something, so this probably comes as a relief, especially if we see positive comments from the IMF (International Monetary Fund)," said Simon Quijano-Evans, emerging markets strategist at Legal & General Investment Management.

The government also said it expected the budget to be passed later in the week. (Reporting by Karin Strohecker, editing by Nigel Stephenson)

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