Ukraine agrees 'win-win' debt restructuring deal | World news | The Guardian

Ukraine agrees 'win-win' debt restructuring deal | World news | The Guardian:



"Ukraine has secured a 20% writedown on $18bn (£11.6bn) of its foreign debts in a deal its finance minister described as win-win for the war-torn country. Kiev’s agreement with its largest creditors is an attempt to stabilise government finances after more than a year of fighting on its eastern border that has brought the country to the edge of bankruptcy.



The hedge funds holding Ukrainian debt will write off around $4bn in return for securities that will pay holders a percentage of Ukraine’s economic growth from 2021. But in a move that is likely to dismay many MPs in the Kiev parliament, the government conceded that it must pay a higher interest rate on the remaining debts.



The deal, which still needs to be approved by creditors outside the group, includes a four-year extension on repayments to give Ukraine breathing space. But the interest rate on the bonds will rise 0.5 percentage points to 7.75%. It ended months of tense negotiations aimed at helping to keep the country on track with its International Monetary Fund-led bailout programme, plugging a funding gap and preventing a unilateral debt default."



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