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Ukraine pays $33 mln coupon on 2016 bond-analysts

Published 11/23/2009, 12:30 PM
Updated 11/23/2009, 12:33 PM

LONDON, Nov 23 (Reuters) - Ukraine made a $32.9 million coupon payment on a $1 billion sovereign Eurobond due 2016 on Monday, bank analysts said, calming fresh concerns on whether Ukraine and its state-owned firms will service their debts.

"They paid the coupon," said Luis Costa, emerging debt strategist at Commerzbank.

"When it comes to Ukrainian debt, it still looks reasonably straightforward as long as Ukraine has continued IMF support. The problem is more how Ukraine is going to deal with bilateral debt of state-owned entities."

Another bank analyst, who declined to be named, also said the coupon payment had been made on the sovereign Eurobond.

Central and western European stocks and currencies fell on Friday on jitters about the debt of Ukraine's state railway company, which said earlier this month it was looking to restructure a $550 million syndicated loan after failing to repay a portion of it.

State energy firm Naftogaz restructured $1.6 billion in Eurobond and bank debt earlier this year.

"It just highlights the extent of uncertainty in Ukraine debt in any shape or form," said Zsolt Papp, chief economist, emerging Europe, at KBC.

"The conclusion is -- stay away from Ukraine. Ukraine remains a basket case."

The International Monetary Fund has suspended its $16.4 billion standby programme for Ukraine until after presidential elections in January.

(Reporting by Carolyn Cohn, Peter Apps and Natsuko Waki; Editing by Ron Askew)

((carolyn.cohn@reuters.com; Reuters Messaging carolyn.cohn.reuters.com@reuters.net; +44 207 542 6320))

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