Ukraine aims to restructure debt in the middle of war, includes GDP warrants: sources
Are you interested in the latest news on Ukraine’s debt restructuring efforts amidst a war-torn environment? Look no further, as we delve into the details of Ukraine’s plans to restructure its debt before payment moratoriums expire on August 1st.
In a recent call with investors, Ukraine expressed confidence in its ability to successfully restructure some $20 billion of international bonds, even amidst the challenges posed by the ongoing conflict. The country is also considering including GDP warrants as part of its restructuring efforts, a move that could impact the terms of the restructuring deal.
Despite previous talks ending without an agreement, Ukraine is determined to engage with investors and reach a resolution soon. The gap between bondholders’ willingness to offer a 20% haircut and Ukraine’s proposal of up to 60% remains a point of contention, but both parties are hopeful that a compromise can be reached.
Key figures involved in the restructuring process, including Yuriy Butsa and representatives from the IMF, have been actively engaging with creditors to find a viable solution. The inclusion of most-favoured creditor clauses in the restructured bond instruments is also being considered to ensure fairness in future debt restructuring processes.
Stay tuned for more updates on Ukraine’s debt restructuring efforts and the impact it could have on the country’s economic outlook. The road ahead may be challenging, but with determination and cooperation, Ukraine aims to navigate through these turbulent times and emerge stronger than before.
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