Ukraine failed to reach an agreement on debt restructuring: what now.

Ukraine was unable to reach an agreement with investors regarding the restructuring of its debt. This was reported by the Ministry of Finance.

The Ukrainian government and representatives of the special committee of GDP warrant holders exchanged proposals but did not find a common solution.

The Ministry of Finance reported that the meeting with the committee members took place from April 15 to April 23. This committee consists of institutional investors who hold about 30% of Ukraine's GDP warrants. The meeting presented proposals for the restructuring of these warrants, which align with the IMF program and the principle of equal treatment of official creditors.

Ukraine proposed two options to the GDP warrant holders: exchanging warrants for eurobonds created during the restructuring in 2024, or changing the terms of the issuance of warrants by canceling payments for 2025-2028. Both options are part of a single exchange operation and a request to change the terms of circulation. Investors can choose either option, and their participation will be considered supporting the restructuring. However, the GDP warrant holders proposed their version, but it was rejected.

Ukraine states that it remains open to constructive negotiations with all GDP warrant holders in order to ensure the sustainability of its debt and the recovery of the country.

Analysis

Ukraine will continue to negotiate with investors regarding debt restructuring. Currently, the parties have not reached an agreement and are searching for a common solution. This stage is important for strengthening the financial stability of the country, as restructuring will reduce the debt burden and create conditions for its recovery.

Debt restructuring is a complex process that involves an agreement between the debtor and creditors. It is not always easy to implement due to the various interests and priorities of the parties. However, finding a common solution is an important step to support Ukraine's economic development and ensure the stability of its financial system.

Ukraine will continue negotiations and strive to reach an agreement with investors. This is of great significance for attracting new investments and supporting economic growth. Resolving this issue will impact the financial stability of the country and improve its reputation in the global market.