LONDON - Ukraine is pushing to secure a debt restructuring before a two-year payment freeze agreed by holders of its $20 billion of outstanding international bonds expires at the end of August.
Separately, Ukraine owes a further $2.6 billion from a previous pledge to investors that is also in the mix for a rework. The instrument - linked to GDP growth targets - was created during its 2015 debt restructuring in the wake of Russia's annexation of Crimea as a sweetener to creditors. A group of official creditors - including Canada, France, Germany, Japan, the United Kingdom and the United States - have already agreed to a payment pause until March 2027.
Looking at how a possible debt restructuring could unfold, JPMorgan sketched a scenario under which the existing bonds would be swapped into four new ones maturing between 2028-2039 and with step-up coupon payments.