As Ukraine fights Russian-backed separatists in the Donbas, the government is simultaneously engaged in a battle with its foreign creditors for the debt relief it desperately needs to prevent a full-scale economic collapse. Ukraine owes $32 billion in foreign currency Eurobonds.To stave off disaster, the International Monetary Fund and other western donors agreed to a $40 billion rescue package for Kyiv earlier this year. The IMF expects $15 billion of it to come from the restructuring of Ukraine’s international bonds—meaning that Kyiv must cajole its foreign creditors into taking a loss on their investments. …read more
Source: Atlantic Council
