Guest post: Mr Putin’s clever bond issue | FT Alphaville:
"What to do when your creditor invades? Beyond its occupation of Crimea, Russia remains a lender to Ukraine — even as IMF teams ponder the Kiev government’s financial sustainability. Mitu Gulati, a law professor at Duke University, considers both sovereigns’ options.
________________
In December 2013, Russia lent Ukraine $3bn as the first part of a $15bn assistance package. At the time, few paid attention to either the form that the lending took (a Eurobond) or to a small contractual innovation in the bond issue. Things have changed.
The Yanukovich government is gone, Crimea is trying to secede with the help of the Russians, and Ukraine is on the brink of defaulting on its debt payments unless a substantial EU bailout package is forthcoming. It is in this context that the new contract term and the form of the Russian lending might be important."
'via Blog this'
No comments:
Post a Comment