Ukraine to Skip $665 Million Payment on Growth-Linked Debt

Ukraine said it’s skipping a $665 million payment on government debt linked to economic growth after the country failed to agree on restructuring terms with a group of creditors led by hedge funds.

The east European nation, whose economy and finances have been battered by Russia’s full-scale invasion for more than three years, agreed with investors last year to remove a cross default clause between the so-called GDP warrants and its regular international bonds. That protects it from a scenario in which a default on one instrument carries over to other debt.