(Adds CDS move, updates bond prices, adds background)
LONDON, March 20 Ukraine's dollar-denominated
bonds fell across the curve on Monday, with longer-dated
maturities touching their lowest since early December, after the
International Monetary Fund delayed a decision on disbursing
The 2026 and the 2027 bond
lost more than 0.5 cents to trade just above 90 cents in the
dollar before trimming their losses, according to data from
Five-year credit default swaps for Ukraine, which traders
use to hedge against default risk, rose on Monday to 627.59
basis points (bps), according to data from IHS Markit, up from
620 bps at Friday's close.
"The IMF delay is a technical issue," Sergei Voloboev, chief
economist at Norvik Banka told a conference in London. "I
recognise this is a short-term negative for Ukraine assets and
we see the prices on the screen reflecting that delay today."
The IMF and Kiev announced on Sunday that the fund had
postponed a decision to disburse more aid to Ukraine in order to
assess the impact of an economic blockade Kiev imposed on
Ukrainian authorities have now halted all cargo traffic with
rebel-held territory in the east of the country, formalising an
existing rail blockade by Ukrainian activists that has led to
the worst political crisis in nearly a year.
The IMF's Executive Board had been due to meet on Monday to
approve more assistance as part of a $17.5 billion bailout
programme for the war-torn nation, in exchange for the
pro-Western government passing reforms and tackling corruption.
(Reporting by Karin Strohecker and Sujata Rao; Editing by Jamie
McGeever, Larry King)