Ukraine fails to reach deal with investors to restructure $2.6bn of debt (www.ft.com)
from cm0002@lemmy.world to world@lemmy.world on 24 Apr 14:16
https://lemmy.world/post/28650681

Ukraine said on Thursday that it had failed to reach a deal with holders of $2.6bn of its debt, in a blow to its hopes of securing a restructuring ahead of a payment deadline next month.

The country’s finance ministry said it would “consider all available options” and continue negotiations after the failure of opening talks in Washington this week with holders of its so-called GDP warrants.

Last month the IMF said that “if left untreated” the warrants “constitute an important risk” for the stability of an ongoing $15.5bn bailout and Kyiv’s restructuring of more than $20bn in bonds last year.

“The GDP warrants were designed for a world that no longer exists,” said Ukraine’s finance ministry on Thursday. “Ukraine’s modest economic growth in 2023 was not a sign of surging prosperity but a fragile rebound from a nearly 30 per cent downturn caused by Russia’s full-scale invasion.”

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technocrit@lemmy.dbzer0.com on 24 Apr 15:26 next collapse

Ofc FT is calling these debt/war profiteers “investors”… How much can they leech out of ukraine under the gun?

Capitalist propaganda is so normalized that it’s most often not even mentioned.

Skiluros@sh.itjust.works on 24 Apr 17:42 next collapse

Perhaps this is cope on my part, but I believe we have leverage in this situation.

As the saying goes:

If you owe the bank $100K, that’s your problem. If you owe the bank $100M, that’s the bank’s problem.

AnotherFuckingCoder@lemm.ee on 24 Apr 18:16 collapse

I do wonder if it works really like this

gonzo-rand19@moist.catsweat.com on 24 Apr 18:11 collapse

“The GDP warrants were designed for a world that no longer exists,” said Ukraine’s finance ministry on Thursday.

While that's true, unfortunately you still issued them and powerful people hold them. Billionaires, with or without the IMF, will gleefully wring every dollar from your bones if they have to.

The "investors" even say in the article that if they can't pay the $2.6B soon they'll have to pay $6.6B later, so it should be a simple decision for Ukraine. Yes... a simple decision to put your people into poverty for the horrible crime of being invaded.

As we all know, nothing bad has ever happened when a country has an exorbitant debt after the conclusion of a years-long military conflict. So everything will be swell after Ukraine gives away nearly $3B instead of rebuilding the country.