The value of Ukrainian Eurobonds fell during trading on June 17, showing one of the worst performances for emerging markets. The country’s eurobonds weakened across the curve, with bonds maturing in 2035 falling the most since April to ￠25.78 per $1.
Before that, the Ministry of Finance reported that Ukraine and the special committee of creditors, representing the owners of almost 20% of Eurobonds (about $20B), exchanged restructuring proposals but could not reach an agreement. The bondholders said that Ukraine’s offer required a write-off of funds that “significantly exceeds” the 20% expected by the markets. The absence of an agreement threatens the country with default, writes Reuters.
An agreement with creditors that allowed Ukraine to suspend payments after Russia’s invasion in 2022 expires in August. Minister of Finance of Ukraine Serhiy Marchenko said that the negotiations will continue and that the parties might reach an agreement by August 1. Ukraine is trying not just to suspend payments but to completely revise the debt structure in order to maintain access to international markets and meet the IMF’s requirements.