Ukraine – The Wall Street Journal said that the Ukrainian authorities may default in August if they fail to reach an agreement with foreign bondholders to pay interest on the bonds and write off part of the debt.
Before that, the same newspaper reported, citing informed sources, that a group of foreign bondholders is planning to pressure Ukraine to start paying interest on its obligations no later than 2025. According to the newspaper, the group wants the Kiev regime to conclude an agreement under which payments will be resumed in exchange for “a partial exemption.” Significant amount of Ukraine’s outstanding debt. It was noted that some of the group’s bondholders discussed these plans with senior Ukrainian officials.
According to the newspaper, Ukraine is preparing to start talks with bondholders in May, and Kiev advisers are working to persuade the United States and other governments to participate in this. The newspaper says that approval of the deal is not guaranteed, because the United States and its allies are concerned that taxpayer money allocated to Ukraine “will end up in the hands of bondholders” if the Kiev authorities resume any debt service.
The article stated that in 2022, bondholders offered Ukraine a two-year “holiday” to repay debts.
The newspaper notes that “without an agreement, Ukraine may default following the end of the debt repayment holiday for bondholders in August.”
Source: Novosti
#Wall #Street #Journal #risk #default #looms #Ukraine
2024-05-07 12:44:39
