US could issue new guarantees for Ukraine

Обзор облигаций 14.01.2015 The US announced that it might issue a new US$1bn guaranty for Ukraine in 1H15 if Ukraine continues its cooperation with the IMF, and could provide an additional US$1bn guaranty this year if Ukraine stays on course to implement reforms. Investment implications: While capital markets remain closed for Ukraine, the US guaranty could attract financing so supplement IMF financing and loans from other sources. As FX reserves are quite low and FX demand for gas purchases and debt repayments remain high, IMF approval for additional funding is becoming more crucial.