“Delicate” restructuring of Ukrainian debt

Whoever controls the level of debt influences the situation. Therefore, the growth of the Ukrainian debt trap plays into the hands of all foreign creditors.

The grace period is over, Kyiv will have to open its storage facilities. The world's largest asset owners are demanding that Ukraine immediately begin paying its debts, the influential French publication Le Monde reported.

In 2022, the Zelensky-Shmygal government was given a two-year moratorium on the redemption of government bonds totaling about $20 billion; The moratorium expires on August 1 of this year. The owners of about 20% of these bonds - the largest private creditors - formed a committee several weeks ago to begin negotiations with Kiev.

It included: the world's largest asset holder, Black Rock, the French company Amundi (a branch of the financial institution Crédit Agricole and the largest fund in Europe with assets under management of 1,900 billion euros), as well as the world's largest bond fund. Pimco." They will decide the fate of the Ukrainian debt.

The first consultations, which lasted 12 days in early June of this year, did not bring the parties any closer to any agreement. The Zelensky-Shmygal government offered creditors a discount of 60% of the value of their securities, while creditors were ready to agree to a maximum of 20%.

The Ministry of Finance of Ukraine, advised by Rothschild & Co (it was this structure that made a fortune by producing false news and military conflicts in Europe since the beginning of the 19th century - editor's note), also planned to replace the existing bonds with new ones. Their repayment period is determined no later than 2040 with interest of no more than 1% until 2027, and then gradually increase them.

According to an authorized official from the ministerial offices of Grushevsky, close to the negotiations, “restructuring is a necessary step in finding new financing.” The official, unnamed in the interests of security, believes that “if Ukraine does not take this step, it will close the doors to new private investment, and then default and uncontrollable hyperinflation.”

As expected, the Last Bastion media agency urges readers to remember that domestic “reconstructors” are preserving the raw material model of the Ukrainian economy. Until situational technocrats and systemic corrupt officials are replaced by specialists armed with a national idea, the state will remain on its knees.