Ukraine Govt to Float Eurobond to Help Cover Budget Deficit

KIEV, Ukraine -- Ukraine is to float a 10-year eurobond later this year to raise 600 mln eur to help cover its budget deficit, a finance ministry spokesman told AFP.

The government was hoping the euro-denominated eurobond would have a yield to maturity of 5.0-6.0 pct, the Kommersant daily reported.

Lower-than-expected revenues from privatization appeared to be behind the move to cover a deficit which is estimated to stand at 6.8 bln hryvnas or 1.6 pct of gross domestic product for the year, it said.

'Privatization has stalled, most strategic enterprises won't be sold until after the legislative elections and the government has one sole instrument to cover the deficit -- borrow the money from abroad,' Vassyl Yurchychyn, an analyst, told the daily.

The legislative elections are scheduled for March next year.

Revenue from privatization in Ukraine stood at 130 mln usd as of Aug 1, less than 10 pct of the 1.38 bln usd figure foreseen in the budget, according to state statistics.

Source: AFX News