The battle in Ukraine over the future of reform is far from won, but real progress has been made. The country’s private creditors must now do their part and join the international community and the IMF in taking a haircut on their debts.
LONDON – In addition to its many other troubles, Ukraine now finds itself in a showdown with its creditors. Investors holding high-yielding bonds – many of them bought at heavy discounts after Russia’s annexation of Crimea last year – are demanding to be paid in full. Ukraine’s government, for its part, argues that the country’s financial difficulties – in particular the economic effects of the conflict and the plunge in the value of the hryvnia – have made its debt burden unsustainable.
LONDON – In addition to its many other troubles, Ukraine now finds itself in a showdown with its creditors. Investors holding high-yielding bonds – many of them bought at heavy discounts after Russia’s annexation of Crimea last year – are demanding to be paid in full. Ukraine’s government, for its part, argues that the country’s financial difficulties – in particular the economic effects of the conflict and the plunge in the value of the hryvnia – have made its debt burden unsustainable.