US President Barack Obama and Russian President Vladimir Putin held an informal talk Sunday at the G20 summit in Turkey after the bloody terrorist attacks in Paris.
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The proposal calls into question the implications for Ukraine’s other bondholders, including Franklin Templeton, which reached a $15 billion restructuring agreement with the government in August that involved writing down 20 percent of the face value of their holdings. Now, Russian Federation has for the first time spoken of softening Kyiv’s repayment terms, Bloomberg writes. The restructured notes, which started trading last week, rallied after Putin’s comments, with the yield on the 2027 security falling 12 basis points to 8.89 percent.
“We haven’t not just agreed to restructure the Ukrainian debt, we have offered better conditions than the global Monetary Fund was asking of us”.
“Life indeed moves on, often very quickly, and teaches us lessons”, Putin said. “But I am determined to continue to work with my Russian counterparts, because of the importance that I think we each can bring to this issue, in terms of our insights, our info, our data and sharing”.
“The proposal made by the Russian authorities regarding debt restructuring for Ukraine is a positive step”, the spokeswoman said in an emailed statement.
“Our partners are confident that the creditworthiness of Ukraine will grow, and we have no reason to doubt that we might even receive 3 bln [US dollars – TASS] next year, our partners have no concerns to guarantee the loan”, Putin said.
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–Arkhipov reported from Antalya, Turkey.
