LONDON (Reuters) – A legal conundrum is threatening plans to ease Ukraine’s debt burden and possibly its entire $40 billion IMF-led bailout: should a $3 billion Eurobond held by Russia be classed as commercial paper, or as bilateral sovereign debt?
Kiev is trying to persuade holders of its commercial bonds to swap their bonds for new ones with a lower face value, a reduced interest rate and a longer repayment period.
LONDON, March 25 (Reuters) – Russian dollar bonds rallied
sharply on Wednesday, sharing in the rouble’s run to three-month
highs and riding a wave of local banks’ demand for hard currency
A ceasefire between Ukraine and pro-Russian separatists has
more or less held and oil prices have steadied, allowing Russian
assets to outperform emerging peers recently.
LONDON (Reuters) – Investors who bought Ukrainian bonds as a punt on a high-yield market backed by the West will probably have to write off a major part of the investment as their share of an IMF-led bailout for Kiev.
Some creditors might hope to follow a minority of Greek bondholders who eventually recovered their investment after the majority accepted a restructuring of the country’s debt in 2012.
LONDON (Reuters) – Ukraine’s debt burden cannot be restructured by just extending the maturity of its bonds, and creditors are unlikely to benefit if they “hold out” to maximise payments, Finance Minister Natalia Yaresko said on Tuesday.
After a year of war and political upheaval that has seen its currency plummet and sent its economy into a tailspin, Ukraine agreed a $17.5 billion (12 billion pound), four-year bailout facility with the International Monetary Fund this month. The deal obliges Kiev to restructure at least $15.3 billion of outstanding debt.
LONDON, March 23 (Reuters) – Ukraine has officially invited
Russia to participate in debt restructuring talks but has not
yet received a response, the country’s Finance Minister Natalia
Yaresko said on Monday.
Russia holds $3 billion worth of bonds that mature in
December and are part of the debt Ukraine needs to restructure
under an IMF aid programme agreed earlier this month.
LONDON, March 17 (Reuters) – Emerging market stocks rose 0.7
percent on Tuesday, lifted by Chinese shares at seven-year highs
and weaker U.S. data that fuelled expectations the U.S. Federal
Reserve will remain cautious about raising interest rates.
Downbeat U.S. manufacturing and housing data have caused the
dollar index to ease off recent 11 1/2-year highs and Treasury
prices to rise before the start of the Fed’s two-day meeting
LONDON, March 16 (Reuters) – A $15.3 billion bill for
Ukraine’s private creditors as part of an IMF-led bailout is
unfair unless other sovereign or supra-national lenders have to
restructure debts too, the head of a global financial industry
body said on Monday.
The Institute of International Finance (IIF), which most
recently represented banks and asset managers during Greece’s
2012 debt swap, is not formally involved in Ukraine’s upcoming
restructuring talks. But says it has had informal discussions
with investors involved in the looming Ukraine workout.
LONDON (Reuters) – Fund managers who bet on beaten-down Russian stocks and bonds have been rewarded with some of the best returns in emerging markets so far in 2015.
Foreign investors fled Russia last year, panicked by an oil price collapse, a simmering conflict on the Russia-Ukraine border and Western sanctions that effectively froze the country out of credit markets. The subsequent 50 percent plunge in the rouble’s exchange rate between May and December provided another catalyst for the exodus.
LONDON, March 12 (Reuters) – Emerging-market stocks
rebounded from two-month lows and currencies rose as the dollar
gave up some of its recent gains.
Ukraine’s credit default swaps fell 184 basis points after
the International Monetary Fund approved a $17.5 billion loan
package for the country, a decision that was widely expected.
LONDON (Reuters) – Ukraine, seeking to plug a $15 billion-plus funding gap via debt restructuring, may find that a multi-year payment moratorium does the trick, with investors possibly having to swallow a smaller eventual writedown than feared.
The country is expected to get the nod from the International Monetary Fund (IMF) later on Wednesday for a $17.5 billion loan package, and the fund assumes Kiev will get $15.4 billion from talks with creditors