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Bulls circle on Ukrainian bonds following Rada rout

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Gabriele Foa, a money manager for Algebris Investments, on July 23, was quoted from London as telling Bloomberg that Ukraine’s forecast 3% GDP growth could trigger payments.

Quote"The market is getting excited for early payments or a bond exchange,..The warrants looked favorable already at the time of issuance, but 2019 growth seems to be turning better than expected and the incoming government may support the idea of a buyback."

London-based economist Timothy Ash also waxed upbeat, saying observers now predict Ukraine's Finance Ministry will start buying back $3.6 billion worth of the warrants designed to pay out through 2040.

Quote"One of the issues for the new government to sort out will be GDP warrants, which represent a huge contingent liability on the state…they will eventually have to be dealt with in some liability management style exercise."

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