Eurobonds on average now cost 25-30% of the face value.
at the end of February 2022. At that time, the Russian Federation's attack on Ukraine and investors' pessimism about the future of our country influenced the depreciation of government securities. The current slump is probably caused by investors' realization that the war will be long and exhausting. The expectations of international investors are extremely pessimistic. They do not believe in the viability, not so much of Ukraine, as of its financial system, in the ability of the government to fill the budget and settle debts in a timely manner.
The lack of understanding of the future situation adds to the fixed exchange rate of the hryvnia, investors understand that when the NBU releases it, Ukraine's solvency will decrease, but by how much is unknown. This is unknown and scares off the investor! This is what the experts of ZN.UA.
And the behavior of the Ukrainian Ministry of Finance is hardly understandable for investors. The Ministry of Finance essentially refused to raise the yield of our bonds, despite the increase of the key rate by the National Bank, they explain this by the fact that buying Ukrainian bonds is about patriotism, not about earning. Well, investors in such an inelegant way remind our Minister of Finance that for them it is always “about making money”. alternatives are much less risky, but at the same time quite attractive from the point of view of profit.
hryvnia. The exchange rate of the US dollar against the hryvnia this summer will be stable and not prone to significant fluctuations, despite Russia's war in Ukraine.
