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International Monetary Fund materials released in early August indicated that Ukraine planned to place $1.3 billion in Eurobonds in the third quarter of 2010. Ukraine may place Eurobonds this week or during the coming week, a source in financial circles told the press on Wednesday.

"Placement could be this week or next, everything depends on the market," he said, adding that the technical aspects are in place. It was reported recently that the ten-year Eurobond issue would be $2 billion.

Ukraine conducted a road show for the issue in the first half of July, but the country's Finance Ministry then decided to hold off on placement upon consideration of current sources of financing and the state of liquidity.

VTB Capital, JP Morgan, and Morgan Stanley organized the road-show meetings with investors.

In early June, Ukraine received from VTB $2 billion as a bridge credit in anticipation of placement of sovereign Eurobonds and the receipt of the first tranche of an International Monetary Fund (IMF) credit.

At the end of July, the IMF issued Ukraine $1.9 billion as the first tranche of a new 29-month stand-by program totaling $15.15 billion. IMF materials released in early August indicated that Ukraine planned to place $1.3 billion in Eurobonds in Q3, and to repay the VTB bridge credit in Q4.

However, Deputy Prime Minister Sergiy Tigipko announced later that the terms of the deal with VTB were sufficiently attractive that if no better market terms were available Ukraine might extend the Russian bank's credit.