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Under unprecedented stimulus measures of fiscal and monetary policies, the global financial market conditions in the second half of 2020 – first half of 2021 were loose. For many emerging market economies, the cost of international capital market resources has declined since the beginning of the corona-crisis. The figure shows that the weighted average yield of emerging markets sovereign bonds from January 1 to March 16, 2020 increased from 3.7% to 4.4% per annum. Then it gradually decreased and reached 3% per annum in December 2020. By July 2021 (against the rising long-term interest rates in advanced countries) emerging markets bond yields increased again, but only slightly – to 3.5% For some emerging market economies, the cost of international financing has increased more significantly. They are mostly characterized by high risks of external vulnerability. Unfortunately, Ukraine also belongs to the group of such countries.

If in mid-February 2020 the weighted average yield of Ukrainian sovereign bonds was 5.1% per annum, then at the end of the first quarter of 2020 it reached 9.5%, and in the first half of 2020 – 6.7% per annum. Over the last year, the Ukrainian sovereign bonds yield ranged from 5.3% to 7.9% per annum, and on June 15, 2021 it was 6% per annum.

Read more in the study of Doctor of Economics Tetiana Bogdan “Transforming Public Finances: Global Processes and Challenges for Ukraine”.