Ukraine bondholder group said govt debt proposal was unworkable

Ukraine's ad hoc bondholder group said on Monday that the government's initial proposals to rework some $20 billion in international bonds were unworkable, but that talks toward a solution would continue. Ukraine had announced in a statement earlier on Monday that restricted talks with the bondholder group had concluded without a deal.

Ukraine's ad hoc bondholder group said on Monday that the government's initial proposals to rework some $20 billion in international bonds were unworkable, but that talks toward a solution would continue. Ukraine had announced in a statement earlier on Monday that restricted talks with the bondholder group had concluded without a deal. Time is running out for Ukraine to rework its debt, with a two year payment suspension agreed in 2022 in the wake of Russia's invasion set to expire in August.

The bondholder group said the government's proposed "haircuts" - or write down - on debt of 25% to 60% were "significantly in excess of market expectation," and that the proposal more broadly "would risk substantial damage to Ukraine's future investor base and core objective of re-accessing capital markets at the earliest opportunity." "While it was understood at the outset that the consultation period was unlikely to result in a deal, the consultation period marked a constructive step in the ongoing discussions," the group said in a statement. (Reporting By Libby George, editing by Karin Strohecker)