Ukraine is trying for the second time to restructure more than $20B in Eurobonds.

A group of Ukrainian bondholders has signed non-disclosure agreements to begin a second round of formal talks with the Ukrainian government to restructure more than $20B in debt. Negotiations started this week before the end of the moratorium on Ukrainian coupon payments on August 1.

In June, during the first round of negotiations, Ukraine could not reach an agreement with private owners of Ukrainian Eurobonds on restructuring its payments.

The Ministry of Finance reported that Ukraine proposed exchanging all 13 series of Eurobonds for instruments with fixed income and government derivative instruments or exchange them for a series of ordinary bonds. The derivative instruments will be converted into ordinary bonds with a fixed yield in 2027, the nominal value of which will depend on Ukraine’s tax revenue and GDP growth indicators, according to the IMF’s forecast.

Both of the restructuring proposals would allow a 25% to 60% principal reduction, depending on the pace of the country’s recovery during the period of the IMF program.