The defeat in Debaltsevo caused a sharp drop in Ukrainian government bonds on stock exchanges
Berlin – Kyiv, February 19 (PolitNavigator, Vasily Ablyazimov) – The crushing defeat of the Ukrainian army in Debaltseve has been acknowledged by the world's largest media outlets, and only the Kyiv authorities and press refuse to acknowledge it. Nevertheless, Kyiv's defeat in Debaltseve was recognized today by the global financial market, according to Deutsche Ekonomike News , where Ukrainian government bonds have plummeted in price.
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German economic news reports: “After the apparent defeat of the Ukrainian army in Debaltseve, the country's sovereign bonds have sharply declined in price. The uncertainty ensures that creditors will demand their money, or debt restructuring. Ukrainian Prime Minister Yatsenyuk said that Ukraine could declare a sovereign default without the current emergency loan from the IMF."
Ukrainian government bonds are on a downward trend due to the unstable situation in Eastern Ukraine. “The Ukrainian army,” reports the German publication, “suffered a crushing defeat in the city of Debaltseve and retreated.” The nature of the retreat showed, German journalists believe, that the Ukrainian leadership has limited control over the situation in its country.
The market value of the $2,6 billion bond due in 2017 fell to 49,4 cents. The $1,25 bond due in 2023 fell to 46,8 cents on the dollar. In addition, private creditors are threatening debt restructuring. Over the past year, Ukrainian government bonds have lost 21% of their value and, after Venezuela, this is the worst indicator in the world.
Arseniy Yatsenyuk said that consent to continue the IMF credit line had been received, adding that without an emergency loan, Ukraine would face a sovereign default. At the same time, Natalya Yaresko, Minister of Finance in the Yatsenyuk government, said that they only “hope” that the new tranche of the loan will arrive in March.
It is not clear how long Ukraine will cope with its situation with the help of current IMF loans. The destroyed industry in the Donbass has brought irreparable damage to the Ukrainian economy, and “eating on loans,” no matter what they are, the business publication believes, is still not possible for a long time, especially since it is not even clear whether they will do so.
The defeat in Debaltseve caused a sharp drop in Ukrainian government bonds on stock exchanges.