ukraine eyes september debt repayment freeze
Last Updated : GMT 07:48:56
Arab Today, arab today
Arab Today, arab today

Ukraine eyes September debt repayment freeze

Arab Today, arab today

Arab Today, arab today Ukraine eyes September debt repayment freeze

Stalls are seen at an outdoor market
Kiev - AFP

Ukraine's finance ministry warned Thursday it could declare a technical default in two months should its lenders fail to accept less stringent repayment terms and a possible partial debt write-off.

The war-shattered state's words of caution came on the eve of a crucial Washington meeting at which the International Monetary Fund is expected to back the release of a new payment that would keep Ukraine's $40-billion (37-billion-euro) global rescue package live.

But that money includes $15.3 billion in existing debt Ukraine must restructure over the course of the four-year deal.

Franklin Templeton and three other US financial titans who own about two-thirds of this sum have balked at Kiev's request to accept a 40-percent cut to the value of their original investment in the former Soviet state.

Negotiations have been proceeding slowly and Kiev now faces a September 23 deadline to return $500 million and make smaller interest payments on debt issued by a Russian-backed president who was ousted by street protests last year.

Deputy Finance Minister Artem Shevalev said Kiev would have a tough time explaining in negotiations why it made the September principal payment but is hoping not to have to cover even bigger ones that mature by the end of the year.

"Making the coupon payment is one thing. It shows financial discipline," news agencies quoted Shevalev as saying.

"But after paying the body of the bond, it will be very hard to talk to the other creditors -- why we decide to pay someone in September and not someone else later on."

Ukraine's biggest worry is a $3-billion Eurobond that Russia purchased from the deposed government in the wake of its 2013 decision to bow to Kremlin pressure and reject an EU association pact.

Moscow authorities have refused to join the debt negotiations and demand the money be repaid by the December 20 deadline.

- Creditors under pressure -

Ukraine last week made a new debt restructuring offer that IMF Managing Director Christine Lagarde on Wednesday urged the Western creditors to accept.

The IMF chief said she hoped "bondholders are sensible about what can be achieved" and expressed optimism about recent "progress".

The two sides have agreed to keep their talks private in order to avoid either Kiev or the investment houses putting pressure on each other through the press.

It remains unclear whether the new Kiev proposal includes the 40-percent write-off that the lenders have so furiously fought.

Ukrainian Finance Minister Natalie Jaresko had said Monday she expected direct talks to resume this week.

And her deputy Shevalev confirmed that discussions at various levels were becoming more frequent and involved.

"I cannot disclose the details, but at the very least, our dialogue has reached a new stage of development,"

Lagarde has signalled repeatedly that the Fund's payments to Kiev's pro-Western government would continue even if no immediate debt agreement is struck.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ukraine eyes september debt repayment freeze ukraine eyes september debt repayment freeze

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ukraine eyes september debt repayment freeze ukraine eyes september debt repayment freeze

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Missouri problem mirrors woes

GMT 06:46 2017 Tuesday ,21 November

Missouri problem mirrors woes
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday