Official announcements from BlackRock, Pimco, or major financial news outlets like Bloomberg, Reuters, or the Financial Times.

Ukraine Seeks $20B Wartime Debt Restructuring Deal by August 1 Amid 60% Haircut Dispute

Jun 17, 2024, 08:01 AM

Ukraine's Finance Minister Serhiy Marchenko announced that the country aims to reach an international bond rework deal by August 1. The restructuring involves over $20 billion of international wartime debt, but initial talks have ended without an agreement. A core group of bondholders, owning about 20% of the bonds, rejected Ukraine's proposal, suggesting their own terms which the government did not accept. The government is seeking a nominal haircut of up to 60%, while bondholders expect around 20%. The ad hoc bondholder group criticized the government's proposal as significantly exceeding market expectations and risking substantial damage to Ukraine's future investor base. The failure to reach a deal has led to a fall in Ukraine's sovereign dollar bonds by as much as 1.3 cents. The restructuring is crucial for Ukraine to continue receiving IMF bailouts and to restore private funding for reconstruction. Without an agreement by August 1, Ukraine may face default, further complicating the country's financial situation. Investors, including financial giants like BlackRock and Pimco, are bracing for the prospect of default.