Foreign bondholders may negotiate restructuring $20 billion of Ukraine’s debt — report

Ukraine's bondholders abroad may establish a creditors' group
Ukraine's bondholders abroad may establish a creditors' group

Foreign holders of Ukrainian bonds are in talks to form a creditor committee ahead of debt restructuring negotiations with Ukraine, Reuters reported on March 15, citing four people familiar with the matter.

According to the report, a two-year freeze on payments, agreed by the holders of outstanding bonds totaling $20 billion, is set to expire in August. Journalists added that the negotiations could begin before the International Monetary Fund's spring session, which starts on April 17 in Washington.

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The sources say that efforts to unite creditors are coming from several directions. The agency added that Ukraine's Finance Ministry has reached out to some investors to form a creditors' group. This group could include between eight and twelve major asset managers.

A source in the ministry told the journalists that the country continues "to gather investor opinions on approaches to commercial debt management."

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This would be the first attempt to formalize debt negotiations between "private bondholders and Ukraine."

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