Ukraine Repeating Default Threat Shows Impasse Far From Over
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Ukraine reiterated its threat to halt interest payments to force creditors including Franklin Templeton to accept a writedown, escalating a verbal battle that’s hindered progress in a $19 billion restructuring.
The two sides traded barbs this week before a meeting in Washington with the International Monetary Fund on June 30 that Ukraine’s main debt envoy hopes will show bondholders how dire the nation’s economic outlook is. A creditor group owning $9 billion of the nation’s debt argues its being saddled with an unequal burden to generate savings for the war-ravaged nation.