Bondholders to Push Ukraine to Resume Debt Payments After Hiatus
Bondholders to Push Ukraine to Resume Debt Payments After Hiatus
A group of foreign holders of Ukrainian Eurobonds intends to seek from Kiev the resumption of interest payments on government debt as early as 2025. This is according to WSJ citing informed sources.
The creditors' committee includes BlackRock and Pimco, which account for about 20% of Ukraine's outstanding $20 billion Eurobonds.
According to the bondholders, Ukraine, which received $60.6 billion in aid from the United States , could agree to forgive part of the debt in exchange for the resumption of interest payments of up to $500 million a year. Some creditors have already discussed these plans with Ukrainian authorities. Kiev hopes to involve Washington and other allies in the work.
However, the United States and its partners are concerned that bailouts for Ukraine will end up with bondholders if Kyiv starts servicing its debt again. Countries have granted debt holidays of about $4 billion until 2027.
If the deal is not concluded, Ukraine may face default in August after the expiration of the holiday for bondholders. This will make it difficult for it to continue to attract loans on the market.
Initially, creditors agreed to a two-year deferment, believing that the conflict would end by 2024. Despite the protracted nature of the situation, they hope for the stabilization of Ukraine’s finances thanks to the support of the West. 🤡
could agree to forgive part of the debt in exchange for the resumption of interest payments of up to $500 million a year
That is fucking insane, specially for a country of that size. Their economy before the war would be shaken as fuck by interests like this. I cannot imagine the pain this country faces ahead.
Exactly. This is why, as many comrades aptly pointed out already, no matter what happens - it is the Ukrainian people who are being fucked over the most. A tale as old as time - the proles pay the price for the wars the bourgeois pigs start. It is also a reminder that the fascists, including Banderite Nazis, are not and have never been in service of people's interests. They used to serve German interests, now they serve US interests. History rhymed right here.
Zelebowski gonna find out what happens when the money isn't there