Ukraine Urges Creditors to Enter Confidentiality Agreement

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Ukraine called on its creditors to enter into a confidentiality agreement so they can hold direct negotiations and overcome a three-month deadlock in restructuring talks.

“Concerns about the impact of receiving confidential information on their trading activities has been used as an excuse not to meet with the Ukrainian representatives, including” Finance Minister Natalie Jaresko, the Finance Ministry said in a statement on its website. “If the committee enters into confidentiality agreements, the Minister remains ready to meet with the committee without preconditions.”

The comments highlight another sticking point in negotiations as the country gets ready to meet creditors and the International Monetary Fund for talks in Washington on Tuesday. Talks have stalled over the issue of a principal writedown that creditors say isn’t necessary and Ukraine insists is essential.

“For weeks the government’s position has been that there was no way for the minister to sign a confidentiality agreement,” a spokesman for the creditor committee, which holds $8.9 billion of Ukraine’s debt, said in an e-mailed response to Jaresko’s comments. “The committee has always been prepared to be restricted for the negotiations, but is still being blocked by the minister’s legal team. We find ourselves baffled by the minister’s public stance relative to the stance taken with the committee.”

Ukraine’s $2.6 billion of bonds maturing in July 2017 dropped 0.43 cents to 49.05 cents on the dollar at 7:47 p.m. in Kiev on Monday, the lowest price in a week.

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