A group of foreign holders of Ukrainian Eurobonds intends to seek from Kiev the resumption of interest payments on government debt as early as 2025. This is according to WSJ citing informed sources.
The creditors’ committee includes BlackRock and Pimco, which account for about 20% of Ukraine’s outstanding $20 billion Eurobonds.
According to the bondholders, Ukraine, which received $60.6 billion in aid from the United States , could agree to forgive part of the debt in exchange for the resumption of interest payments of up to $500 million a year. Some creditors have already discussed these plans with Ukrainian authorities. Kiev hopes to involve Washington and other allies in the work.
However, the United States and its partners are concerned that bailouts for Ukraine will end up with bondholders if Kyiv starts servicing its debt again. Countries have granted debt holidays of about $4 billion until 2027.
If the deal is not concluded, Ukraine may face default in August after the expiration of the holiday for bondholders. This will make it difficult for it to continue to attract loans on the market.
Initially, creditors agreed to a two-year deferment, believing that the conflict would end by 2024. Despite the protracted nature of the situation, they hope for the stabilization of Ukraine’s finances thanks to the support of the West. 🤡
If this was a board game, and the goal is to maximize the welfare of the Ukrainian people, and I was in charge of the Ukraine side I would
*1. Call for a cease fire immediately so a peace deal can be worked out.
*2. Make said deal with Putin, give Russia the territories they hold and agree to never join NATO or the EU.
*3. Tell everyone in the west who holds Ukrainian debt or claims on Ukrainian assets to get fucked.
*4. As a part of #2 above, tie the country economically to Russia and BRICS, and even see if you can get some help financially in rebuilding.
Instead, the war is going to drag on and kill so many more people, Ukraine will still lose all the territory Russia holds, and the economy is gonna be fucked for decades because of the debt; and now foreigners own all of Ukraine’s most valuable assets.
Hard to tell if the CIA or Ukranian nationalists would off you first, but that’s why you play the game!