OREANDA-NEWS. January 28, 2010. The acting Finance Minister, Mr.  Igor Umanskiy, announced that the government plans to issue sovereign Eurobonds and place them in April-May 2010. The final decision will be taken after State Budget 2010 has been passed.

Millennium Capital sees the government decision to be related to a lack of funds needed to cover the Budget Expenditures in 2010. For instance, a mere redemption of the local government bonds in April-May 2010 will require around UAH 4bn from the Treasury coffers. Taking into account a low demand for local bonds, as well as an uncovered portion in the Budget 2009 Deficit to the tune of around UAH 60bn (by our estimation), the Government will need to find additional sources of Budget Revenues in addition to the IMF fourth tranche (in the amount of USD 3.7bn).