18:34 07.08.2015

Ukrainian finance minister plans talks with creditors in California on Aug 12

2 min read
Ukrainian finance minister plans talks with creditors in California on Aug 12

Finance Minister of Ukraine Natalie Jaresko will go to the United States for talks with private creditors scheduled for August 12, the ministry's press service has told Interfax-Ukraine.

The meeting will be held in San Mateo ( California), where the head office of the largest holder of Ukrainian eurobonds, Franklin Templeton, is located.

The restructuring is part of the international assistance to Ukraine, however the negotiations with the creditors were unsuccessful between March and late June. Kyiv threatened to impose a moratorium on debt service payments if the holders of around $20 billion of its bonds do not agree to begin negotiations, during which the Ministry of Finance offered to write off 40% of the debt principal, permit execution by installments, and reduce interest payments.

The creditors' committee, representing the four major holders of bonds worth $8.9 billion, in turn argued that without writing off the principal Ukraine will be able to meet the IMF's required parameters of debt burden by offering long-term deferral of payments.

Kyiv insisted on writing off considering the parameters of the IMF program, threatening from late May to introduce a moratorium on payments, but simultaneously proposing additional "cost recovery instruments" from mid-June, payments on which will be held if Ukraine achieves higher than projected figures of GDP growth.

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