A group of foreign bondholders plans to persuade Ukraine to pay interest on its obligations in 2025, the Wall Street Journal newspaper reported, citing sources.
“A group of foreign bondholders, including US investment firms BlackRock BLK and PIMCO, plans to pressure Ukraine to start paying interest on its debt again as early as next year,” the publication said.
According to the newspaper, the foreign representatives want Kiev to make a deal under the terms of which it would resume payments in exchange for “forgiveness of a significant part” of the country’s outstanding debt. The group’s bondholders have discussed these plans with senior Ukrainian officials, according to the published material.
The Wall Street Journal noted that the group of bondholders, which controls about one-fifth of Ukraine’s outstanding Eurobonds worth $20 billion, recently formed a committee to address the issue of payments by the Ukrainian side. Lawyers from US law firm Weil Gotshal & Manges and bankers from investment bank PJT Partners will negotiate on behalf of the group.
“The bondholders hope to receive up to $500 million in annual interest payments after agreeing to debt relief. They have signalled that they may be willing to provide additional aid (to Ukraine. – ed.) at a later date,” the newspaper stressed.
According to the Wall Street Journal, some creditors suggested using Russia’s frozen assets for Ukraine to pay part of its debt.
We shall remind you that earlier, the head of the French Patriots party, Florian Philippot, spoke in favour of a complete cessation of support for Ukraine due to its collapse on the frontline.
