Jaresko will not receive debt restructuring until September 23, possibly until December 23 – The Bloomberg
Ukraine's creditors, led by FranklinTempleton, are deliberately delaying stalled debt restructuring negotiations in order not to write off a penny, the publication believes Bloomberg.
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“The breakdown in negotiations reflects the increased likelihood that growing differences between Ukraine and the committee of creditors led by FranklinTempleton will prevent an agreement in the next six weeks,” the newspaper reported. While the devastated nation faces default on all its international debts, creditors are delaying negotiations in order not to lose a penny of benefits from payments on Ukrainian Eurobonds.
In an attempt to overcome differences, Finance Minister Natalya Yaresko plans to travel to FranklinTempleton's home turf of California for talks on August 12th. All previous negotiations, which lasted for many months, ended in nothing.
Friction last week ended with a new drop in the value of Ukraine's Eurobonds from 59 cents on the dollar to 56 cents.
To obtain a $17,5 billion IMF loan for Ukraine, it is necessary to save $15,3 billion by changing the terms of sovereign bonds.
“Ukraine must be careful not to alienate its largest investors,” writes TheBloomberg, “as the IMF bailout envisages an increased debt burden not in 2015, but in 2017. A majority of respondents to a Bloomberg poll last week predicted the moratorium would not be signed until Sept. 23. There is a chance that Ukraine will not complete its debt restructuring by December 23, when payments on Russia’s $3 billion sovereign debt come due.”
In 2017, Ukraine will have to repay not only previous debts, which are already close to the volume of the country’s GDP, but also repay those loans for which the Yatsenyuk government and the American Minister of Finance Natalia Jaresko Ann are now fighting so hard.
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