Friday, June 26, 2015

Ahead of Debt Talks Ukraine And Its Creditors Exchange 'Blows'

Ukrainian Finance Minister Natalia Yaresko speaks to the media during news conference in Kiev, Ukraine, June 19, 2015. Reuters/Valentyn Ogirenko

Bloomberg: Ukraine Repeating Default Threat Shows Impasse Far From Over

Ukraine reiterated its threat to halt interest payments to force creditors including Franklin Templeton to accept a writedown, escalating a verbal battle that’s hindered progress in a $19 billion restructuring.

The two sides traded barbs this week before a meeting in Washington with the International Monetary Fund on June 30 that Ukraine’s main debt envoy hopes will show bondholders how dire the nation’s economic outlook is. A creditor group owning $9 billion of the nation’s debt argues its being saddled with an unequal burden to generate savings for the war-ravaged nation.

“It’s very difficult to bridge the differences between the two sides,” Ivan Tchakarov, an economist at Citigroup Inc. in Moscow, said by phone on Friday. “Given the fact that both sides have expended so much effort arguing their positions, it’s difficult to step back now.”

More News On Ukraine's Debt Crisis

Ukraine, creditors at loggerheads ahead of key meeting -- Reuters
Ukraine, creditors exchange blows ahead of debt talks -- AFP
Ukraine's finance minister says Ukraine could default in July - Russia's TASS agency -- Reuters
Ukraine should delay debt payment until 2019 without writing it off – creditors committee -- RT
With IMF backing, Ukraine heading for September debt moratorium -- Fiscal Times
Ukraine's Creditors Fear Moratorium as Debt Deadline Looms -- Moscow Times/Reuters

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