14:53 11.09.2015

Finance ministry predicts successful debt restructuring, despite objections of some short bond holders

2 min read
Finance ministry predicts successful debt restructuring, despite objections of some short bond holders

The objections of some of holders of Ukraine's bonds due in September and October 2016 to restructuring conditions will not disrupt the whole debt transaction, Finance Minister Natalie Jaresko has said.

"I understand that they are in talks with committee members [the Ad Hoc Committee of Creditors with which Ukraine agreed the debt restructuring conditions]. They do not contact us… As far as I know they do not have a blocking package," she told reporters on the sidelines of the 12th Annual Meeting of the Yalta European Strategy (YES) in Kyiv on Friday.

She said that the letter of short-term bond holders, which outlines their objections, will not have any impact.

Jaresko also said that creditors which do not have questions for the Finance Ministry have agreed to the restructuring in general and want to hold talks between each other.

She said that the planned deadline for finishing the restructuring process remains the same – October.

"Everything is left as we planned. It's obvious that we need that Rada support for these draft laws [on restructuring] so that they are passed, signed by the president and then we're able to start this legal exchange," she said.

As reported, a group of bondholders which own Ukraine's shortest-dated international debt said on Tuesday that the agreement is biased against them and have asked for the deal to be changed. The group said in a letter sent to other bondholders that the conditions agreed by the Finance Ministry of Ukraine and the Ad Hoc Committee of Creditors foresee that their payments are delayed for more years than everyone else.

While the group may not yet have enough support to block a deal, the letter issued by their solicitors asked for other owners of the securities to join them.

The group is represented by law firm Shearman & Sterling LLP.

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