Exclusive-Ukraine bondholders poised to form creditor group for $20 billion debt talks, sources say

By Thomson Reuters Mar 15, 2024 | 8:17 AM

By Jorgelina do Rosario and Karin Strohecker

LONDON (Reuters) – Ukraine’s overseas bondholders are in talks to form a creditor committee ahead of debt rework talks with the country, according to four people with direct knowledge of the discussions.

Time is of the essence for Ukraine to secure a restructuring before a two-year payment freeze agreed by holders of its $20 billion of outstanding international bonds ends in August.

A formal group could kick off talks ahead of the International Monetary Fund’s spring meetings, two sources said, which are scheduled to start on April 17 in Washington.

Russia’s full-scale invasion in February 2022 has shattered Ukraine’s economy and finances, forcing it into a sovereign default. This would be the first effort to formalize debt talks between private bondholders and the country.

A formal group would be able to engage with the government to hold detailed discussions and exchange concrete proposal, involving privileged information.

Ukraine’s debt management office did not immediately comment.

(Reporting by Jorgelina do Rosario and Karin Strohecker, editing by Elisa Martinuzzi)