Ukraine will have to pay interest on money owed to its creditors due to its default on GDP warrants.

A group of holders of GDP warrants in Ukraine issued a statement regarding the state’s default on these securities. The creditors noted that now Ukraine will be compelled to pay interest on the unpaid amount, said the Ad Hoc Group, which holds more than 30% of the warrants.

Ukraine declined to pay $665.5M on its GDP warrants, as it was unable to reach a debt restructuring agreement with creditors. In effect, this represents a payment of about $542M, as the Ukrainian Ministry of Finance purchased nearly 20% of the warrants.

“The Ad Hoc Group expresses disappointment with Ukraine’s decision to default without proper interaction with the warrant holders. This is especially unfortunate given the proposal submitted to Ukraine during limited discussions in April,” the statement read.

The statement also notes that the overdue payment amount will accrue interest at 7.75% per annum, totaling more than $40M. Simultaneously, the group clarified that this charge will be applied only if the parties ultimately fail to agree on a restructuring plan.