Ukraine suspends all payments on its government debt

24.09.2015 / 08:29

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From 23 September Ukraine stopped payments on its public debt. Default refers to sovereign debt bonds issued in the period 2005 - 2013. Also included $ 500 million with a maturity of September 23. The event was suggested by rating agency Fitch and Standard & Poor's.

The Ukrainian government is already in talks with creditors to restructure $ 19.3 billion and for writing off 20% of debt. According to Bloomberg negotiations are slow and without much optimism. Lenders do not take 8 years of grace, and the law firm Shearman & Sterling LLP stresses that disgruntled creditors have a blocking package of votes.

The Finance Ministry of Ukraine announced yesterday that lenders will be more profitable to engage in restructuring, rather than give it up and assert their rights because the extension will be the most effective solution to the crisis.

It is expected any time ISDA to declare a "credit event for Ukraine" and activate associated with these debts CDS (credit default swaps).

JrTrader G.hristov

Varchev Traders

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Ukraine suspends all payments on its government debt

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