Ukraine fails to reach deal to restructure $2.6bn of debt.

Kyiv due to make estimated $600mn payment on GDP warrants next month

Ukraine said on Thursday that it had failed to reach a deal with holders of $2.6bn of its debt, in a blow to its hopes of securing a restructuring ahead of a payment deadline next month.

The country’s finance ministry said that it would “consider all available options” after the failure of talks in Washington this week with holders of its so-called GDP warrants.

Last month the IMF said that, “if left untreated”, the warrants “constitute an important risk” for the stability of an ongoing $15.5bn bailout and Kyiv’s restructuring of more than $20bn in bonds last year.

Payouts on the warrants are tied to Ukraine’s annual economic growth, which could rebound strongly in the event of a ceasefire with Russia.

Kyiv will have to decide whether to default on a payment of close to $600mn that is due at the end of May, linked to the economy’s performance in 2023, if it is unable to reach a deal on a restructuring in time.