New Ukraine bailout plan worries private bondholders – IIF

0

WASHINGTON, D.C.: A leading international banking group expressed concern on Wednesday (Thursday in Manila) over talks for a new international bailout of Ukraine that could hit private bondholders.

Advertisements

The Institute of International Finance (IIF), which counts 500 major global financial institutions as its members, said the $40 billion rescue of the embattled country appears to include $15 billion that would come from non-payment of Ukraine debt held by private sector investors.

Ondrej Schneider, an IIF expert recently returned from a mission to Kiev, said the private sector was not being consulted in the talks between the Ukraine government and major official creditors led by the International Monetary Fund (IMF).

“Besides the cash from the IMF and other donors, there’s about $15 billion in non-payment of the debt. And the concern is that this is included in the program even before negotiations with private bondholders have started,” he said.

“So the private sector is expected to contribute without any consultation. This is not a very friendly way to do these things.”

Schneider said the country has to pay $15 billion in debt service through 2018.

AFP

Share.
loading...
Loading...

Please follow our commenting guidelines.

Comments are closed.