Ukraine’s Eurobond holders demand payment resumption next year.

A group of foreign bondholders, including BlackRock and Pimco, will pressure Ukraine to resume interest payments on its debt as early as next year.

The WSJ notes that the owners of outstanding Ukrainian Eurobonds worth $20B recently formed a committee and hired lawyers from Weil Gotshal & Manges and bankers from Partners PJT to conduct negotiations. The creditors want to reach an agreement with Ukraine to resume payments in exchange for writing off a large part of the country’s outstanding debt. Some of the group’s bondholders have discussed these plans with senior officials in Kyiv.

Western countries have agreed to give Ukraine a debt holiday on its loans worth about $4B until 2027 and have expressed concern that private creditors may receive debt payments earlier than they will. It is noted that Ukraine is preparing to start negotiations with bondholders this month, and advisers in Kyiv are working to involve the governments of the United States and other countries.