Ukraine reaches debt restructuring deal with 20 % bond write down

Russian Federation has refused to accept the terms of a private sector debt write-down agreed between Ukraine and its creditors after months of global wrangling. The deal, which still needs to be approved by creditors outside the group, includes coupon levels of 7.75 percent and extensions of four years for each bond’s repayment to give Ukraine a breathing space. Ukraine’s sovereign dollar bond prices surged after news of the deal. “It’s been a very hard five months”, said Jaresko, a Chicago native who was given Ukrainian citizenship when Poroshenko appointed her finance minister last December.


“I think it’s a historic success for Ukraine, I think for emerging markets generally”, Jaresko told AFP in an interview shortly before the formal announcement was made at a televised government meeting.

Russian Federation said it won’t participate in Ukraine’s debt restructuring, Finance Minister Anton Siluanov said on Thursday.

Ukraine will temporarily suspend payments on that bond and a €600 million note due in October, the Finance Ministry said in today’s statement.


Franklin Templeton and three other financial titans that own almost half of the $19 billion (16.8 billion euros) in commercial debt under discussion had argued that the country was in strong enough shape to repay what it owed in full. An issue maturing at the end of September, which is also subject to restructuring, rose 4.3 cents to also trade at 64 cents.

Ukraine reaches restructuring deal with 20% writedown to bonds