The creditors' committee headed by Franklin Templeton, which is holding negotiations with Ukraine on restructuring its Eurobonds, believes that the latest offer made by the Ukrainian government this week is unacceptable, Bloomberg has reported.
According to the creditors, the proposal for a high level meeting in London on Aug. 6 is premature.
As reported, the Ministry of Finance on Aug. 4 sent an updated proposal on restructuring the private external debt to the special creditors’ committee, the essence of which has not been disclosed.
“Taking into account time required for the legal registration of proposals for restructuring, the current week will be decisive for the negotiations. With this in mind, the ministry calls on the creditors to take part in high-level face-to-face talks in London on Aug. 6,” the ministry said in a statement.
The restructuring is part of the international assistance to Ukraine, however the negotiations with the creditors were unsuccessful between March and late June. Kyiv threatened to impose a moratorium on debt service payments if the holders of around $20 billion of its bonds did not agree soon to begin negotiations, during which the Ministry of Finance offered to write off 40 percent of the debt principal, permit execution by installments, and reduce interest payments.
