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londonstockexchange | CLEANSING ANNOUNCEMENT, 17 June
Kyiv, Ukraine: The Government of Ukraine ("Ukraine") announces today that over a twelve-day period from 3 to 14 June 2024, representatives of Ukraine held meetings with members of the ad hoc creditor committee (the "Ad Hoc Creditor Committee") comprised of a number of major institutional asset managers and other long-term investors in Ukraine representing around 20% of the outstanding amount of Ukraine's Eurobonds, as well as with certain other holders of Eurobonds ("Investors") on a bilateral basis. Ukraine entered into the consultation period with the Ad Hoc Creditor Committee and the Investors to discuss, under non-disclosure agreements, the potential terms of a restructuring of Ukraine's thirteen series of outstanding Eurobonds (the "Eurobonds") listed in Annex
[...]
As detailed in Annex B, Ukraine's proposal (the "Sovereign Proposal") consisted of the exchange of the Eurobonds for either (i) a package of fixed income instruments (the "Vanilla Bonds") and state-contingent instruments (the "SCDIs") ("Option 1") or (ii) a package of Vanilla Bonds ("Option 2"). In relation to Option 1, the SCDIs would be converted into Vanilla Bonds based on a single test in 2027 with a face value dependent upon Ukraine's performance on tax revenues, subject to meeting conditions around real GDP levels projected in the IMF's baseline scenario. As such, if the revenue test and GDP target is met, the SCDIs would be replaced by fixed-income instruments of Ukraine whose cash flows would be certain. Both options have been designed to deliver holders cash flows during the IMF program period and provide for a nominal haircut ranging between 25 and 60% depending on the country's recovery over the IMF program period. The Sovereign Proposal also incorporated certain legal terms, including a "loss reinstatement" provision and a "most-favoured creditor" clause....
reuters | Ukraine's international bond rework derailed with little time left, 17 June
Ukraine has not been able to reach an agreement with a group of bondholders over restructuring some $20 billion of international debt during formal talks, it said on Monday, raising the spectre that the war-torn country might slip into default. An agreement with holders of international bonds that allowed Ukraine to suspend payments after Russia's invasion of the country in 2022 ends in August....Bondholders said the government's proposal had demanded a write down that was "significantly in excess of market expectation" which was consistent with a 20% "haircut".
alarabiya reuters | Ukraine's Marchenko says
"Strong armies must be underpinned by strong economies to win wars," he said, adding the country's economy was a "fragile balance" that hinged on consistent and substantial support from its partners. "Timely debt restructuring is a critical part of this support."
by Cat on Tue Jun 18th, 2024 at 05:55:59 PM EST
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