Photo from UNIAN
The restructuring deal that Ukraine has agreed with its main creditors isn't over the finishing line yet, Bloomberg reported.
A group of bondholders owning the nation's shortest-dated international debt said on Tuesday that the agreement is biased against them because their payments are delayed for more years than everyone else, according to the report.
Ukrainian bonds, including those maturing this month and next, surged when the terms of the restructuring deal were revealed to be better than many investors were expecting. As well as extending the maturity on about $18 billion of debt, it also includes a 20% reduction to face value, higher average interest payments and warrants that would pay holders if the nation's economy regains traction.
"It has been suggested that all bondholders should get identical packages of the new bonds," Shearman & Sterling LLP law firm that represents a group of bondholders stated.
"Our clients consider this approach unfair, because it would defer the average maturity by more than eight years for the existing bonds due 2015," as stated in a letter of Shearman & Sterling.
As UNIAN reported earlier, the Government of Ukraine reached an agreement with the creditors' committee on a 20% haircut of the debt totaling $18 billion, which is subject to restructuring.