If Ukraine fails to resume payments to foreign creditors, it could face default by autumn, writes the Wall Street Journal. The deal in question is one proposed by foreign investment funds – for Ukraine to resume interest payments on debts in exchange for writing off part of the bond debt (amounting to $20 billion).
If the deal is not reached, Ukraine may declare default – as the debt servicing moratorium imposed by foreign funds after Russia’s full-scale invasion will end in August.
At the same time, US authorities and other Western countries are concerned about the demands of creditors. They fear that the money allocated to Ukraine as assistance will be used to pay interest, as noted by the WSJ. These countries themselves have provided credit moratoriums to Kiev until 2027.”
