Ukraine Eurobonds Drop as Goldman Sees More Than 70% Haircut - Bloomberg

Ukraine Eurobonds Drop as Goldman Sees More Than 70% Haircut - Bloomberg:



"Ukraine’s foreign-currency borrowing costs rose for a second day as Goldman Sachs Group Inc. (GS) said a debt writedown may erase 70 percent of the bonds’ value and Russia said it may demand the early repayment of a $3 billion bond. 




Ukraine’s dollar-denominated debt maturing July 2017 fell 2.7 cents to 59.87 cents on the dollar by 6:52 p.m. in Kiev after rising 2.2 cents last week as the European Union pledged further financial aid. The yield on the notes rose 229 basis points to 34.20 percent, nearing the record 36.10 percent reached last week.



Representatives from the International Monetary Fund, who are currently reviewing Ukraine’s loan program in Kiev, may force the country’s government to start talks on debt restructuring of as much as 70 percent of its bonds’ value before agreeing to an increase in funding, according to Goldman Sachs."



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