KYIV, April 19 – Ukraine's inclusion in the JPMorgan Government Bond Index-Emerging Markets (GBI-EM) index family, which was scheduled for March 31, 2022, is now subject to a further review given the current circumstances, according to the Global Financial Stability Report (GFSR Report) of the International Monetary Fund (IMF).

This inclusion was expected to bring additional flows to the local market and help with market deepening," the IMF said in the report released on Tuesday.

The intention to include hryvnia domestic government bonds of Ukraine in the GBI-EM GD index, starting from March 31, 2022 with an approximate share of 0.12%, was announced by the Ukrainian Ministry of Finance in the middle of October last year, citing JP Morgan Global Index Research.

Then it was about one series of bonds that met the requirements of the index – government bonds with a coupon of 15.84% and maturity in February 2025 (UA4000204150), the volume of which since the initial placement in June 2019 reached a nominal amount of UAH 41.08 billion (at that time equivalent to $1.56 billion).

JP Morgan Global Index Research, referring to investors, also noted an improvement in market liquidity over the past two years, although it pointed to a lengthy account opening process in Ukraine, which could take several months.

Ukraine was also considered for inclusion in the "narrow" GBI-EM indices, which include securities without regulatory or tax barriers. As specified, the share of Ukraine in JESG GBI-EM could also be 0.12%, GBI-EM Div – 0.22% and GBI-AGG Div. – 0.02%. (om/ez)