Ukraine has not agreed with its creditors on Eurobond restructuring terms.

Ukraine and a special committee of creditors, representing the owners of almost 20% of Ukraine’s Eurobonds, negotiated between June 3 and 14 and exchanged restructuring proposals. However, according to an announcement by Ukraine’s Ministry of Finance on the London Stock Exchange, they were not able to reach an agreement. Ukraine’s proposal was to exchange Eurobonds for:

1. a package of instruments with fixed income (Vanilla Bonds) and situationally dependent debt instruments (SCDI), tied to the results of 2027 tax revenues and the achievement of a GDP target
2. Vanilla Bonds only

These options involve writing off 25% to 60% of the debt. Instead, Eurobond holders offered their own terms, which do not meet IMF requirements. Ukraine and the creditors’ committee will continue discussions. An agreement on the terms of the restructuring is expected by August 1.