Templeton Cedes Ground on Ukraine Writeoff as Debt Payment Looms - Bloomberg Business:
"Franklin Templeton has come to grips with the fact that it won’t be able to avoid losses on its $7 billion investment in Ukrainian bonds.
The investment firm and three other bondholders this week offered the eastern European nation a small amount of debt relief, the first time they’ve entertained the possibility of a writedown on their principal holdings. The size of the so-called haircut they proposed is 5 percent, a person familiar with the negotiations said on Thursday. That compares with the 40 percent Ukraine was said to have asked them for last month.
While investors are hailing the offer as a step toward ending a standoff, Ukraine is running out of time to get a deal in place before its first Eurobond matures Sept. 23. The nation needs to alter terms on $19 billion of debt as a condition for International Monetary Fund aid aimed at pulling the economy out of a recession that’s deepened in the 16 months since a battle with pro-Russian separatists started in the east."
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