Vladimir Putin said earlier that Russia is ready to restructure Ukraine’s debt via installment payments for three years – one billion dollars a year. The obligations of Ukraine shall be guaranteed in the USA, the European Union or a major Bank.
WASHINGTON, 21 Nov. The creditors ‘ Committee of Ukraine will not comment on the proposal of the Russian authorities on the restructuring of the Ukrainian debt, said the Committee’s representative, Matthew Goodman.
The Russian President Vladimir Putin said Monday that Russia is ready to restructure Ukraine’s debt via installment payments for three years — one billion dollars a year. The obligations of Ukraine shall be guaranteed in the USA, the European Union or a major Bank. This year, Ukraine proposed to pay only the interest.
“I’m afraid the Committee will not make any statements,” said Goodman on the question of whether the Committee should protest against this proposal, as the club creditors agreed to write off 20% of the debt, while Russia agree only on installments.
Some experts have suggested that the creditors ‘ Committee will oppose the restructuring proposed of the Russian Federation. In particular, senior research fellow of the Atlantic Council Anders Aslund wrote that it was prejudice to other creditors.
Nevertheless, the Committee is either not yet determined their attitude, or will to protest. As previously noted, a debt default would adversely affect the value of securities all holders of Ukrainian debt.
The procedure of restructuring of external debt of Ukraine at $ 15 billion was completed on November 12. In mid-October, the owners of 13 Eurobond approved by a majority (75%) of the votes. From $ 15 billion $ 3 billion written off, repayment of another $ 8.5 billion rescheduled for a later date.
The largest holder of debt is the club of creditors of Ukraine (accumulated 8.9 billion dollars of debt). It includes three American investment Fund subsidiary of Franklin Templeton — Franklin Advisers, TCW Investment Management Company and T. Rowe Price Associates, as well as Brazilian investment Bank BTG Pactua. The club was the most active negotiator and provided 50% of the votes in the successful vote on the restructuring.
Russia is the only holder of Eurobonds of Ukraine at $ 3 billion, has repeatedly said that the conditions are not satisfied. While the agreement on this debt is crucially important for Ukraine, the date when the bonds must be repaid on 20 December, otherwise the country faces default.