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Problems with PrivatBank and Russian sanctions slapped on Ukrainian Eurobonds | ubr.ua

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The financiers are afraid of the collapse of the hryvnia on the panic of foreign investment funds

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Quotations of Eurobonds of Ukraine from 17 to 18 April fell by 0.19-0.29 percent, depending on the maturity of the paper, said UBR.ua head of analytical Department of Concorde Capital Oleksandr Parashchiy. Hardest — 0.28-0.29% of the price of the bonds maturing in the years 2021-2023, they were sold more active.

Although the drawdown of quotations occurred before the second round of the presidential elections, the experts leave this factor out of the equation, and do not consider it significant. Much more important from their point of view, are yesterday’s news about the approval by the Russian government a new list of sanctioned goods that Russian companies were forbidden to purchase in Ukraine. And a message about the illegality of the nationalization of PrivatBank: after a decision of the District administrative court of Kyiv, which is the national Bank with the Ministry of Finance immediately vowed to appeal.

“Russian restrictions affect investor sentiment in the first place, and news of PrivatBank — the second,” said Parashchiy.

Monday financial experts predict multidirectional movement of quotations of bonds.

“They will react to information, which can lead to a debate. As well as respond to the constraints of the Russian Federation”, — said para.

In General, analysts say not very active in trading of Ukrainian Eurobonds. Where more foreigners are interested in domestic bonds in UAH. The yield amounts to 19% per annum, because it draws the interest of buyers. Over the past two days the total portfolio of government bonds to foreigners increased by 20% (to 5.1 billion UAH.) and reached 30.5 billion UAH. That is, exceeded $1 billion.

On currency risk were more likely to draw the attention of financial analysts. They fear natural relief large packages of hryvnia government bonds by non-residents in the aggravation of political risks in Ukraine. With serious pressure on the currency market and the devaluation of the hryvnia.

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