IMF Staff Said to View Ukraine Debt in Line With Russia Stance
ByInternational Monetary Fund staff formed a preliminary view that $3 billion in bonds sold to Russia by Ukraine should be classified as official rather than private debt, according to a person familiar with the matter.
Treating the bonds as official debt, as Russia has sought, would exclude them from the bond restructuring Ukraine is negotiating with a creditor group led by Franklin Templeton, placing a greater burden on private bondholders.
The status of the bonds is subject to approval by the IMF’s executive board, said the person, who asked not to be identified because the deliberations are private. Russia has said its debt should be treated as official aid and repaid in full when the bonds mature in December, while Ukraine argues that the debt was structured as a Eurobond under U.K. law and is therefore liable to the same treatment as private creditors…
IMF Staff Said to View Ukraine Debt in Line With Russia Stance
