19:06 GMT +318 October 2019
Listen Live
    Kiev, Ukraine

    International Creditors Plan to Forgive 20 Percent of Ukraine's Debt

    © Flickr/ Alexxx Malev
    Business
    Get short URL
    1317
    Subscribe

    Kiev has long campaigned for a group of international creditors to write off as much as 40 percent of Ukraine's sovereign debt but investors are reported to have agreed to a 20-percent haircut in a bid to fulfill the conditions of a $40 billion IMF bailout.

    The sides are allegedly close to signing a restructuring agreement, although a formal announcement has yet to be made. The deal will mark a breakthrough for the talks that have been deadlocked for months.

    The agreement between the Ukrainian government and its private lenders could be inked by the end of this week, Elaine Moore, an expert on global debt, reported, citing a source close to the negotiations.

    However, other sources familiar with the situation told the Wall Street Journal that the deal could fall through since it has not been finalized. Ukraine's Finance Ministry maintains that talks are far from being over and "all options remain on the table."

    "There is no agreement yet, negotiations are still going on to meet the IMF targets. The government of Ukraine has taken no decision and all options remain on the table," the agency said in a statement.

    The investors were initially strongly opposed to the deal saying the Ukraine government could repair the country's depressed economy without a major debt relief.

    Ukraine has been edging economic collapse since the US-sponsored coup brought the current Kiev authorities to power. The country relies heavily on external financial assistance to breathe life into its stagnant economy, plagued by an ongoing civil war, mismanagement and corruption.

    The Bank of America named Ukraine the world's third riskiest sovereign borrower, meaning the country could default on its debt.

    Hole Lot Of Trouble
    © Sputnik /
    Hole Lot Of Trouble

    Related:

    Ups and Downs in Ukraine's 24-Year History: Has Kiev Learned Its Lesson?
    Where’s My Money? Half of Ukraine’s GDP Lost Due to Underground Economy
    Ukraine Among Top Three Economies Most Likely to Default
    Ukraine Already in Default – Ex-Minister
    Tags:
    creditors, Ukrainian economy, debt talks, debt relief, debt restructuring, International Monetary Fund, Ukraine
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik