Saturday, March 7, 2015

Rothschilds proposed to establish a club of Ukraine's creditors

French unit of  Rothschild Group shall consult with the creditors on a possible mediation in the forthcoming negotiations with the Ministry of Finance on the restructuring of external liabilities of the country.

This was announced by Managing Director of Rothschild & Cie in Russia and CIS Giovanni Salvetti in the comments to agency Bloomberg.

According to him, the holders of securities are currently awaiting the Government's proposals, which could be announced in mid-March. At the same time, many of them are already preparing for tough conditions.

Rothschild made a proposal to form a committee of holders of notes. Opinions creditors about this split.

"Some prefer to continue to expect the Government's proposals, others - to establish a specific set of hard and fast rules -" we expect the proposals, but be aware that we do not accept this, this and that ", - he said.

According to a source close to the fund, there are now about 10-15 foreign private investors, who should meet and discuss further funding of Ukraine.

At the same time the largest private investor, the fund Franklin Templeton, in whose hands is saved keeps 25 to 30% of the sovereign external debt of Ukraine, the situation is also not commenting. According to a source close to the fund, it is no one to lead such negotiations.

"We have invested in the Ukrainian debt. Rothschild asked if we wanted to join the next group of creditors. We refused. How can I analyze the state of the debt if the country is at war?" - At the same time, Reuters reported, citing US portfolio manager, who preferred not to give his name.

However, in general, lenders and experts Rothschild while only exchange views, establish who and what is going to do and the sequence of actions added Salvetti.


As reported, the Minister of Finance of Ukraine Natalia Yaresko January 21 this year stated that Ukraine has applied to the IMF for a new four-year program for increased funding EFF and will consult with the creditors in order to improve the medium-term debt sustainability.

She later clarified that the consultation is scheduled to start after the final decision of the IMF on a new program, which is expected on March 11 and hold them with all creditors, including Russia.

It is assumed that such external debt restructuring will reduce external payments Ukraine during the program EFF approximately $ 15 billion. Given the size of the EFF claimed of $ 17.5 billion and the related additional financial assistance from other international financial institutions and partner countries of approximately $ 7.5 billion, the IMF estimates the total financial package for Ukraine at $ 40 billion.

Original article 

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