By Marc Jones<\/p>\n
(Reuters) -Talks between Ukraine and holders of its GDP warrants have broken down for a second time in six months, the Ukrainian government \u200bsaid, adding another delay to its hopes of restructuring the $3.2 billion of \u200cbond-like instruments.<\/p>\n
Having failed with an original proposal back in April, this time Kyiv offered warrant holders a simpler plan to \u200cconvert their warrants into a new traditional-style bond, sweetened with an additional cash payment.<\/p>\n
“The parties have jointly decided to terminate the restricted discussions without reaching final agreement on the terms of a potential restructuring of the warrants,” the finance ministry said in a statement issued on \u2060Thursday.<\/p>\n
The government intends to “continue engagement”\u200c with the debtholders, it said, adding that it would consider “all available options” to restructure the instruments, which is a stipulation \u200dof its IMF programme.<\/p>\n
In a statement on Friday, the group of warrant holders which was negotiating with the government said its main request in the talks was for a “claim reinstatement mechanism” – effectively an insurance \u200bpolicy that would protect the proposed new bonds against any future debt restructuring.<\/p>\n
Ukraine threw in the \u200cGDP warrants – fixed income securities which only pay out if Ukraine’s economy grows strongly – to help clinch its 2015 debt restructuring following Russia’s annexation of Crimea.<\/p>\n
But their complex structure meant they were not part of last year’s broader $20 billion restructuring that became necessary following Moscow’s full-scale invasion in early 2022.<\/p>\n
With still no sign of the war ending and the country now \u2060hoping to secure a four-year multi-billion-dollar extension \u200bof its IMF plan by the start of next year,\u200b onlookers have asked whether the Fund might recommend a further debt write-down.<\/p>\n
The warrants themselves meanwhile climbed by just over 3 cents on Friday to 87.71 cents \u200don the dollar – \u2060well above the 41-68 cents levels of the already restructured sovereign bonds.<\/p>\n
Ukrainian Finance Minister Serhii Marchenko on Thursday called the lack of progress “regrettable”.<\/p>\n
“Our objective remains clear,”\u2060 he added. “To secure a solution that supports Ukraine\u2019s macroeconomic stability and recovery, while maintaining our \u200ccommitments under the IMF programme.”<\/p>\n
(Reporting by Marc \u200cJones; editing by Cynthia Osterman and Gareth Jones)<\/p>\n","protected":false},"excerpt":{"rendered":"By Marc Jones (Reuters) -Talks between Ukraine and holders of its GDP warrants have broken down for a…\n","protected":false},"author":2,"featured_media":555016,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7654],"tags":[62389,2000,299,62390,36354,657,104887],"class_list":{"0":"post-555015","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ukraine","8":"tag-debt-restructuring","9":"tag-eu","10":"tag-europe","11":"tag-holders","12":"tag-restructuring","13":"tag-ukraine","14":"tag-ukrainian-government"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115508222700640662","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/555015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=555015"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/555015\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/555016"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=555015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=555015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=555015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}