Ukraine has experienced a difficult post-crisis period as gross domestic product dropped by 15% in 2009. The country borrowed $2bn from Russia's Vneshtorgbank this summer to cover a budget gap. But the country's new government has sought to implement tough austerity measures - such as a 50% increase on natural gas prices for households - to reduce its budget gap, stabilise its currency and apply for a second round of IMF money. The government has also approved changes to the tax system aimed at encouraging much-needed foreign investment to help boost the country's finances.
The Ukrainian issue, its first since November 2007, shows the continued return of investor appetite to the emerging Europe region as it follows a recent Polish government bond of €1bn as well as a $750m bond by Lithuania. Governments are not the only entities tapping the markets; PrivatBank, a leading Ukrainian bank, also recently raised $200m through a five-year Eurobond issue.
