[Aaus-list] Ukraine and its debt deal
pyz at brama.com
Thu Aug 27 12:38:52 EDT 2015
Ukraine Wins Debt Relief as Russia Refuses to Join Agreement
"Maturities to be pushed back by four years, coupons at 7.75%"
"Russia rejects request to accept new terms on $3 billion bond"
"Finance Minister Natalie Jaresko reached an accord with a Franklin
Templeton-led creditor committee that includes a 20 percent writedown to
the face value of about $18 billion of Eurobonds, the first of which
matures in less than a month. Representatives for creditors said they
couldn’t immediately comment. Bonds surged the most on record. Ukraine
said it is offering the same terms to Russia, which holds a $3 billion
bond due in December. Finance Minister Anton Siluanov reiterated that
Russia won’t participate in the restructuring."
"Poroshenko is seeking to meet the conditions of emergency assistance from
the International Monetary Fund, ..."
This means that Ukraine is on IMF life-support. No illusions.
Christine Lagarde, er, the IMF approves
Statement by IMF Managing Director Christine Lagarde on Ukraine
Press Release No. 15/390
August 27, 2015
"The announced parameters of the agreement will help restore debt
sustainability and - together with the authorities' policy reform efforts
- will substantively meet the objectives set under the IMF-supported
Keywords: " ... will help ... ." Meaning: this isn't the end of this
... and then crowd roared back:
Mohamed A. El-Erian @elerianm tweeted:
While “officialdom” welcomes deal between #Ukraine and bond holders, the
terms risk falling short of what’s needed for #debt #sustainability
Ukraine Seen Kicking Can Down the Road With Debt Deal: Analysts
"20 percent principal cut seen as `soft' by Societe Generale"
"IMF growth targets were too optimistic: Union Investment"
"Michael Ganske, head of emerging markets at Rogge Global Partners in
London: 'A 20 percent haircut is moderate. Whether the deal is enough to
bring Ukraine back to debt sustainability is questionable and obviously
debt sustainability will be also determined by Ukraine’s macro development
... which means there is an awful lot of restructing and consolidation
that has to take place in-country.
Back to you Chet.
pyz at brama.com
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