New debt restructuring negotiation attempt fails

Обзор облигаций 08.06.2015 Talks between MoF advisors with an ad hoc committee of creditors failed to make progress. While the MoF reiterated the need for the creditors to negotiate a debt restructuring consistent with the EFF program, a majority of creditors are unwilling to compromise. Investment implications: After Ukreximbank and its creditors agreed to a debt extention without a principal haircut, this procedure appeared to lay a foundation for the sovereign debt restructuring. As the MoF urges the need for a principal haircut to decrease the debt burden and financing needs, the MoF should submit real proposals to creditors, but it appears that less than a half of the creditors currently are willing to negotiate.