Foreign holders of Ukrainian bonds are in talks to form a creditor committee ahead of debt restructuring negotiations with Ukraine, Reuters reported on March 15, citing four people familiar with the matter.
According to the report, a two-year freeze on payments, agreed by the holders of outstanding bonds totaling $20 billion, is set to expire in August. Journalists added that the negotiations could begin before the International Monetary Fund’s spring session, which starts on April 17 in Washington.
The sources say that efforts to unite creditors are coming from several directions. The agency added that Ukraine’s Finance Ministry has reached out to some investors to form a creditors’ group. This group could include between eight and twelve major asset managers.
A source in the ministry told the journalists that the country continues “to gather investor opinions on approaches to commercial debt management.”
This would be the first attempt to formalize debt negotiations between “private bondholders and Ukraine.”