Ukraine's eurobonds slide on news about PrivatBank, arson at ex-NBU head's home

This reflects the investors' opinion about the increased risk of investing in Ukrainian warrants.

!!!!!!!!!!!!!!!! UAA1 !!!!!!!!!!!!!!!

Ukrainian eurobonds fell amid news of a possible compromise with the former owner of PrivatBank, Ukraine's largest bank nationalized in 2016, and the arson attack on the house of ex-governor of the National Bank of Ukraine, Valeria Gontareva.

ICU group analyst Mykhailo Demkiv has told UNIAN that yield on Eurobonds maturing in 2032, in U.S. dollars, increased by 0.16 percentage points against yesterday – up to 6.91%, which reflects the opinion of investors about higher risks related to investing in Ukraine's warrants.

"This fall [of Ukrainian eurobonds] is not yet overshadowing the powerful growth we had in 2019, but this is an alarming signal," the expert explained.

On Sept 17, the Financial Times, a publication reputable among investors, wrote about a possible compromise the could be reached by the government with the former owner of PrivatBank, the bank nationalized in 2016, businessman Ihor Kolomoisky.

The information was shared in Ukrainian media.

Read alsoUkrainian central bank's net intl reserves grow to over US$12 bln in Aug

In response, Prime Minister of Ukraine Oleksiy Honcharuk said that the government was carefully studying the situation around PrivatBank, but "not conducting any negotiations with anyone".

Also today, information appeared about the arson attack overnight Tuesday on the house of ex-NBU governor Valeria Gontareva in the village of Horenichi outside Kyiv.

The police qualified the incident as a deliberate destruction of property and found an incendiary light-noise rocket at the scene.

President of Ukraine Volodymyr Zelensky said he expects law enforcement to speed up an investigation into arson.

!!!!!!!!!!!!!!!!!!!!!!!! UAA2 !!!!!!!!!!!!!!!!!!!!!