News / Economy

IIF: Ukraine, Creditors in Talks on Possible Debt Restructuring

Reuters
Ukraine is holding talks with creditors on restructuring its foreign currency debts, an official from an international finance association said on Thursday following recent meetings with Ukrainian officials.
          
Lubomir Mitov, an economist with the Institute of International Finance, said that while Ukraine's finances were precarious, it was too soon to say whether it would need to change the terms of its debt.
          
Mitov said Ukrainian officials stressed they would avoid forcing any so-called haircuts on bondholders in a debt restructuring.
          
“The Ukrainians authorities made very clear to us that they would consider this only as a really, truly voluntary operation agreed by the bondholders,” Mitov told journalists by phone. “A voluntary exchange or maturity extension could be one of the sources for financing.”
          
The IIF, a trade group for international finance, said Mitov had recently visited Ukraine.
          
Ukraine's economy is under severe pressure as the country struggles with what Russian President Vladimir Putin has described as a civil war. Ukrainian President Petro Poroshenko, who took office on June 7, is pushing a peace plan to end the rebellion in eastern Ukraine, where pro-Russian militants are fighting for secession from the country.
          
Mitov said Ukraine is already in a deep recession that could shrink its gross domestic product, a measure of total economic output, by between 8 percent to 10 percent.
          
Still, he said Ukraine's public finances will not be poor enough to necessitate a debt restructuring deal until at least next year. And even then, Kyiv might not need a restructuring if it is able to return to capital markets to raise money, Mitov said.
          
“Nothing is decided yet, but we know they are having some talks - preliminary talks - on this,” he said.
          
The price of Ukraine's 2017 dollar bond  fell sharply following Mitov's comments, according to Reuters data.
          
“The mention of 'restructuring' is causing people to reduce exposure,” said Tim Ash at Standard Bank in a client note.

You May Like

Video 2nd American Reportedly Killed in Syria

Minnesota television report says Abdirahman Muhumed left area to fight for Islamic State militants More

WHO Fears Ebola Outbreak Could Infect 20,000 People

World Health Organization says outbreak 'continues to accelerate' but that most cases are concentrated in a few local areas More

Angelina Jolie Marries Brad Pitt

Actors wed in small private ceremony Saturday in France More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Chinese Doctors Use 3-D Spinal Implanti
X
August 27, 2014 4:53 PM
A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Uneasy Calm Settles Over Israel, Gaza Strip

Israel and the Gaza Strip have been calm since a cease-fire set in Tuesday evening, ending seven weeks of hostilities. Hamas, which controls Gaza, declared victory. Israelis were more wart. VOA’s Scott Bobb reports from Jerusalem.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. VOA News reports from Kolkata.
Video

Video Northern California Quake: No Way to Know When Next One Will Hit

A magnitude 6.0 earthquake rocked northern California’s Napa Valley on Sunday. Roads twisted and water mains burst. It was the wine country’s most severe quake in 15 years, and while hospitals treated many people, no one was killed. Arash Arabasadi has more from Washington on what the future may hold for those residents living on a fault line.
Video

Video Scientists Unlock Mystery of Bird Flocks

How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.
Video

Video Ukraine: Captured Troops Proof of Russian Role in Separatist Fight

Ukrainian officials say they have captured Russian soldiers on Ukrainian territory -- the latest accusation of Moscow's involvement in the conflict in eastern Ukraine. VOA's Gabe Joselow reports from the Ukrainian side of the battle, where soldiers are convinced of Russia's role.
Video

Video Rubber May Soon Come From Dandelions

Synthetic rubber has been around for more than a century, but quality tires for cars, trucks and aircraft still need up to 40 percent or more natural rubber content. As the source of natural rubber, the rubber tree, is prone to disease and can be affected by bad weather. So scientists are looking for replacements. And as VOA’s George Putic reports, they may have found one in a ubiquitous weed.
Video

Video Jewish Life in Argentina Reflected in Yiddish Tango

Jewish people from across Europe and Russia have been immigrating to Argentina for hundreds of years. They brought with them dance music that were eventually mixed with Argentine tango. The result is Yiddish tango -- a fusion of melodies and cultural experiences that is still evolving today. Elizabeth Lee reports from the Skirball Cultural Center in Los Angeles, where one band is bringing Yiddish tango to an American audience.

AppleAndroid

World Currencies

EUR
USD
0.7537
JPY
USD
103.79
GBP
USD
0.6032
CAD
USD
1.0957
INR
USD
60.522

Rates may not be current.