{"id":11066,"date":"2015-08-15T08:25:16","date_gmt":"2015-08-15T13:25:16","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11066"},"modified":"2015-08-15T08:25:16","modified_gmt":"2015-08-15T13:25:16","slug":"ukraine-fails-to-secure-debt-write-off-at-us-talks","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11066","title":{"rendered":"Ukraine fails to secure debt write-off at US talks"},"content":{"rendered":"

Ukraine fails to secure debt write-off at US talks<\/a><\/h3>\n

Ukraine failed to convince its biggest creditors to significantly reduce its debt obligations during a \u2018last chance\u2019 two-day negotiation in San Francisco, California. The delegation from Kiev hoped to restructure some $19 billion in debt.<\/span><\/p>\n

The Ukrainian delegation was headed up by Illinois-born Finance Minister Natalie Jaresko. Meanwhile, the creditors were represented by Franklin Templeton Investments, which holds about $8.9 billion worth of Ukrainian debt in the form of bonds.<\/p>\n

The two sides said they had conducted\u00a0\u201cdetailed discussions\u201d<\/em>\u00a0in the city, but no progress has reportedly been achieved.<\/p>\n

READ MORE:\u00a0Creditors offer Ukraine 5% debt write-down – media<\/a><\/strong><\/p>\n

Even though there have been no official statements concerning the negotiations, Ukraine had previously asked for a 40 percent debt write-off, Bloomberg cited sources as saying. Reportedly, Franklin Templeton Investments was only willing to offer a 5 percent reduction to bond principal conditional on economic performance.<\/p>\n

Ukraine described the talks near Templeton\u2019s headquarters as the\u00a0\u201cfinal opportunity\u201d<\/em>\u00a0to agree on something prior to next month\u2019s due date for $500 million worth of bonds.<\/p>\n

Even lobbying by influential US hedge fund billionaire George Soros, who recently had an article published in the Wall Street Journal titled \u2018Ukraine Deserves Debt Relief,\u2019 did not seem to make an impact.<\/p>\n

In the piece, Soros argued that investors should stand behind Ukraine in its request for debt relief, which would help the country save some $15.3 billion in debt-servicing costs over the next four years as well as lower debt to below 71 percent of GDP by 2020. Ukraine must achieve those milestones if it hopes to take advantage of a proposed IMF bailout program.<\/p>\n

The country\u2019s GDP is expected to shrink 9 percent this year, with annual inflation expected to jump to 46 percent, the IMF has warned. The debt will hit 95 percent of GDP this year, according to the National Bank of Ukraine.<\/span><\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Ukraine fails to secure debt write-off at US talks Ukraine failed to convince its biggest creditors to significantly reduce its debt obligations during a \u2018last chance\u2019 two-day negotiation in San Francisco, California. The delegation from Kiev hoped to restructure some $19 billion in debt. The Ukrainian delegation was headed up by Illinois-born Finance Minister Natalie […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2015,195,6869,8115,357,418,1610,8116,8114,821,860],"class_list":["post-11066","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bailout","tag-debt","tag-debt-relief","tag-franklin-templeton","tag-george-soros","tag-imf","tag-kiev","tag-natalie-jaresko","tag-rt-news","tag-ukraine","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11066"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11066\/revisions"}],"predecessor-version":[{"id":11067,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11066\/revisions\/11067"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}