Growing Default Risk Shown in Worst Ukraine Bond Rout Since June
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Ukraine’s Eurobonds slid the most in two months as renewed signs of discord between the nation and a Franklin Templeton-led creditor group increased the likelihood of default.
The sovereign’s $2.6 billion of debt due July 2017 fell 1.31 cents to 55.44 cents on the dollar at 5:28 p.m. in Kiev, the biggest drop since details emerged on June 11 that Ukraine was asking for a 40 percent writedown on principal. Progress made in direct negotiations that started last month stalled this week as a high-level meeting proposed by the government was turned down by creditors seeking more time to review Ukraine’s latest offer.