Default Bets Emerge as Minister's Exit Exposes Ukraine Turmoil
- Spread between shortest- and longest-maturity debt widens
- Economy minister walk-out is signal reform efforts faltering
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Less than three months after Ukraine restructured $15 billion of debt, investors are starting to doubt the government can avoid returning to the bargaining table.
The yield on the shortest-maturity bond surged above 10 percent on Wednesday after the resignation of Economy Minister Aivaras Abromavicius revealed growing dysfunction in the government as it tries to overhaul the economy to meet conditions for a International Monetary Fund bailout. The premium investors demand to hold notes due in 2019 over bonds due eight years later widened to the most since the November debt revamp.