Quotes for Ukrainian sovereign Eurobonds on Wednesday dipped by 0.2 – 0.8 percentage points (PP) on the decision of the High court of London to consider the claim of Russia to the Ukraine in an expedited manner.
According to Bloomberg, with negative dynamics of leading securities maturing in 2022, the cost of which by 12:45, fell 0.8 percentage points to 95,25% of face value and the yield increased with 0,194 percentage points to 8.87% per annum.
Followed by Eurobonds with maturity in 2025 and 2026. their quotes have decreased by 0.75 p. p. to 91,95% of par value and 91% of face value, respectively. The yield of the securities thus increased by 0,136 percentage points to 9,139% per annum and on 0,128 PP – 9,197% per annum.
As you know, the higher the yield of Eurobonds, the more risky they are.
See also: Milestones “debt of Yanukovych”: how Ukraine and Russia argued over three billion dollars
As reported, London’s High court on Wednesday endorsed an expedited consideration of the claim of Russia to the Ukraine on Eurobonds for 3 billion , the Judge rejected all the arguments of the Ukrainian side, including those removed from Russian allegations of political pressure on Ukraine.
Kiev intends to challenge the decision of the High court of London. The court gave permission to appeal.
Ukraine has received from Russia a loan of 3 billion dollars under President Viktor Yanukovych in December 2013, Russia was planning to give Ukraine $ 15 billion loan, however, before broke the key events of the revolution of dignity, to allocate only managed the first tranche.
Kiev insisted on the recognition of commercial debt with its subsequent restructuring and debt write-downs. In turn, Russia has refused the restructuring on the terms taken by private creditors of Ukraine, and demanded to recognize the government debt.
The IMF has recognized the sovereign nature of the debt, but retained the ability to continue financing of Ukraine, despite the default on this debt. In December 2015, the Ukrainian government imposed a moratorium on debt payments on these Eurobonds.
