Ukraine is running out of money. It has over a $1bn of debt that comes due this autumn and the government has managed to scrap together enough to meet this payment thanks to dollar and euro Eurobond issues on the domestic market as well as a $750mn Eurobond private placement on August 23.
However, next year the debt payments balloon and with only $17.7bn in reserves – almost exactly the three months import cover needed to ensure the stability of the currency – its crunch time. An IMF team is in Kyiv at the start of September and the government needs to strike a deal if it is to avoid another currency crisis.
bne IntelliNews editor-in-chief Ben Aris talks to Mykhaylo Demkiv, an analyst with ICU in Kyiv about the prospects of a deal and the problems of refinancing the country’s debt
Ben Aris, editor-in-chief, bne IntelliNews
Mykhaylo Demkiv, financial analyst with ICU, Ukraine’s leading investment bank