LONDON Dec 21 Ukrainian sovereign dollar bonds
rallied across the curve on Wednesday after the passage of the
2017 budget boosted chances of securing the next tranche of the
International Monetary Fund's (IMF) $17.5 billion loan.
The budget keeps the deficit at 3 percent of gross domestic
product - in line with the IMF requirements.
Bonds that were issued as part of a restructuring deal last
year rose to six-week highs, with the exception of the 2019
issue which hit an eight week high, according
to Tradeweb data.
The average yield premium paid by Ukraine's bonds on
JPMorgan's EMBI Global Diversified index fell 18 basis
points to the narrowest in over a year.
The spreads have contracted some 50 bps since the end of
last week, helped also by the government's decision to
nationalise PrivatBank, the country's biggest lender, which had
been in dire straits.
(Reporting by Karin Strohecker and Sujata Rao)