Friday, May 29, 2015

Direct talks between the ukrainian government and the creditors' committee will be held on June 5

Ukraine's Finance Ministry said on progress in negotiations with private creditors on debt restructuring and an agreement to hold on Friday, June 5, a telephone conversation with the special creditors' committee after scheduled for the next week of intense negotiations between advisers.

"Today a telephone conversation between the representatives and advisers of the Ministry of Finance and a special committee of external commercial creditors. The Ministry notes with satisfaction that the process of cooperation between the two sides of the negotiations on the restructuring of sovereign debt of Ukraine is enhanced," - said in a statement the Ministry of Finance on Friday night.

According to her, the purpose of a telephone conversation June 5 - assessment of progress in the negotiations.

"We emphasize the commitment of Ukraine to negotiate in a spirit of cooperation and integrity, and in accordance with international principles. The Ministry of Finance believes that negotiations reached a mutually beneficial agreement on the restructuring, which will meet the objectives agreed within the framework of the cooperation program with the IMF" - said the Finance Ministry.


The Ministry of Finance also welcomed the statement by German Finance Minister Wolfgang Schaeuble support the finance ministers of the "Big Seven" (G7) "the successful completion of the debt restructuring of Ukraine."

As reported, after the approval of the International Monetary Fund (IMF) of a new four-year program for increased funding EFF for Ukraine $ 17.5 billion Ministry of Finance since March 13, has started consultations with creditors on restructuring the external debt of about $ 23 billion to save the payment during the period of the program to $ 15 , 3 billion.

Ukraine retained as financial advisor Lazard Freres SAS, the legal - White & Case, made up of the five largest holders of Ukrainian debt creditors' committee - Blackstone and Weil Gotshal.
The Ukrainian side has repeatedly stressed that for the purposes of the IMF program will need not only to delay the repayment of the foreign debt, but also to write off part of its face value and lower interest rates, with the exception of state banks Eurobonds and "Ukrzaliznytsia".

At the same time, the largest Ukrainian securities holders do not want to accept the cancellation of the principal amount, considering that the scope of the claimed reduction of payments is too large. In addition, Russia is demanding payment of $ 3 billion at the end of 2015, refusing to participate in the restructuring.

The creditors' committee said on May 18 that consists of funds managed or represented by BTG Pactual Europe LLP, Franklin Advisers Inc., TCW Investment Management Company and T. Rowe Price Associates, Inc. and in constant contact with the other holders of Ukrainian eurobonds, and together they own more than $ 10 billion Ukrainian debt. Lenders once again insisted on refusing debt relief.

In turn, the Ukrainian government to intensify talks held June 19 through parliament a law that grants him the right to stop payment on the debts included in the perimeter of the restructuring. The law signed by the President on May 28, but it has not yet entered into force.

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