The rumors yesterday were true: Ukraine has signed a deal with its creditors that includes a 20 percent haircut on the face value of a debt that totaled almost $18 billion. In addition, the deal will extend the maturity of the debt by four years, with interest rates set at 7.75 percent. The deal was signed after weeks of tense negotiations between Ukraine’s Finance Minister Natalie Jaresko and representatives of various private bondholders, among whom the largest was Franklin Templeton.Ukraine now gets some breathing room to sort out at least its looming obligation to Russia, to which it owes $3 …read more
Source: The American Interest
