IMF Says Ukraine Bond Owned by Russia Is Official Sovereign DebtBy
Fund executive board rules $3 billion bond is official claim
Ukraine must prove it’s negotiating with Russia in good faith
The International Monetary Fund’s executive board ruled that a bond sold by Ukraine to Russia should be considered official sovereign debt, putting pressure on Ukrainian officials to start restructuring talks with their Russian counterparts.
Russia bought a $3 billion bond from the government of former Ukrainian President Viktor Yanukovych in 2013. Ukraine, which is preparing to default on the bond due Dec. 20, has offered Russia the same restructuring terms, including a 20 percent principal writedown, that creditors led by Franklin Templeton accepted in October. Russia has insisted on payment in full…
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