Bank of America believes that Ukrainian dollar bonds have growth potential.

Strategists at BofA Securities, an American multinational investment banking division under the auspices of Bank of America, believe that Ukrainian dollar bonds show significant growth potential. Meanwhile, bonds are currently weakening across the curve as bondholders face difficult negotiations with the country over yet another restructuring.

“We now see a fair value between $28-$33, which leaves significant upside potential for current prices,” BofA said.

Ukraine must reach an agreement with creditors by the end of August when the two-year $20B freeze on payments that was previously agreed to by bondholders ends.

“The next trigger could be the successful completion of restructuring, which remains our benchmark“, BofA strategists noted.

At the same time, experts point to several risks: the first is Ukraine’s ability to make coupon payments in the coming years, and the second is whether these payments will be tied to Ukraine’s economic indicators.