World Economy

Ukrainian Bonds Plummet

Ukrainian Bonds PlummetUkrainian Bonds Plummet

Ukrainian government bonds plunged as efforts faltered to shore up the ruling coalition after a key reformer quit and accused presidential party members of corruption, Bloomberg reported. Notes issued in November following a $15 billion restructuring are poised for their worst week in the wake of comments from the parliament speaker that Ukraine is entering a “serious political crisis.” The political turmoil threatens to jeopardize a $17.5 billion International Monetary Fund rescue loan and is causing investors to increase bets that Ukraine may have to return to the negotiating table with its creditors. The yield on bonds due September 2019 jumped 27 basis points to a near-record 10.22% in Kiev, bringing the weekly increase to 85 basis points.