LONDON—Ukraine made a key interest payment on its bonds, the
finance ministry said Friday, following progress in
debt-restructuring talks between the country and its creditors.
The conflict-torn country and a committee of four investors
holding about $9 billion of its bonds have been in months of tense
discussions to restructure $19 billion of the country's debt. They
issued a joint statement last week saying progress had been made,
an optimistic message ahead of Friday's deadline for a $120 million
coupon payment on Ukraine's two-year bonds.
Also last week, Ukraine was allocated the proceeds of a bond
sale by the European Union, which has pledged to lend the country a
total of €1.8 billion ($1.97 billion). The International Monetary
Fund agreed in March to a $17.5 billion bailout for Ukraine.
Prices of the country's two-year bonds increased slightly after
Friday's payment announcement. The bonds were recently trading at
around 56 cents to the dollar, compared with 55 cents Thursday.
They were trading as low as 38 cents in March, and rallied last
week after signs of progress in the talks.
Ukrainian officials have demanded a 40% principal reduction of
the country's debt and had threatened to stop making repayments.
The creditor group has said they won't accept any "haircut" to the
amount they are owed. The finance ministry is being advised by
Lazard, while Blackstone Group is advising the creditor group.
Christopher Whittall contributed to this article.
Write to Chiara Albanese at chiara.albanese@wsj.com
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