Ukraine and a group of creditors, led by hedge funds, could not agree on the conditions for the restructuring of the debt to the upcoming payment in May, write Bloomberg and Financial Times. The decision is about negotiations with the holders of the so-called warrants (GDP Warrants)-papers that were released after previous long-term crises. They bring payments to investors if the real growth of the Ukrainian economy exceeds 3% per year. It is expected that on May 31, Ukraine should pay more than $ 500 million, based on GDP growth in 2023. Ukrainian, as Bloomberg writes, offered the creditors two options, one of which includes the exchange of warrants for state bonds (this removes dependence on GDP). But investors agreed only to the restructuring of the May payment, while demanding more than 400 million in cash and converting more than 200 million into new bonds, writes Bloomberg. The finances of Ukraine said that “will consider all available options” of restructuring. At the same time, the Ministry of Finance noted that the warrants based on GDP “were created for the world that no longer exists.” The department insists that “modest economic growth” in 2023 is considered not as a sign of prosperity, but only as a sign of “fragile recovery” after falling by 29.2% in 2022, caused by the outbreak of war.financial Times writes that Kyiv will have to decide whether to declare a default for the payment at the end of May. Bloomberg is $ 3.2 billion. At the same time, the material of Financial Times states that Ukraine could not agree on a debt restructuring in the amount of 2.6 billion dollars (probably in the first case, the total nominal amount is meant, and in the second, the part of it was negotiated with investors). Varrants, whose repayment period was not included in the last year’s transaction on the last year’s transaction The restructuring of Ukraine’s external debt for $ 20 billion, notes Bloomberg.the Economist: in August, Ukraine may be announced by a default. Is it possible to avoid it and what can be the consequences? The Economist: in August, Ukraine can declare a default. Can it be avoided and what can be the consequences? (Tagstotranslate) News
Ukraine could not agree on the restructuring of payments with holders of 2.6 billion dollars of its debt
