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Ukraine Bonds Plunge After 'American' FinMin Escalates Default Threat
In the last 3 days, Ukraine's short-term bond prices have crashed 9%. Specifically the 2017s are down 3.5 points today alone following Ukraine's (American) finance minister threats yesterday in Washington that it will default on its debt unless creditors (which include both Russia and the US taxpayer) acquiesce to their demands for more aid (more debt). As Bloomberg reports, the country will stop making payments on its debt if talks don’t make progress, Finance Minister Natalie Jaresko told reporters in Washington Wednesday. Bondholders are “deeply concerned” about Jaresko’s stance, a creditor group led by Franklin Templeton said in a statement today.
The comments suggest a two-month impasse in negotiations is only hardening as coupon payments come due this month and a $500 million bond matures in September. As Bloomberg goes on to note,
“The positions of Ukraine and creditors are far-far away,” Gintaras Shlizhyus, a Vienna-based strategist at Raiffeisen Bank International AG, said by phone Thursday. “That makes me believe that we are talking about the prolongation of talks maybe even beyond September.”
...
Ukraine has two coupon payments due on sovereign bonds next week, including $75 million it owes by June 20 on a Eurobond that Russia bought from the regime of former President Viktor Yanukovych before he was overthrown in February 2014.
Jaresko has told creditors that a 40 percent principal writedown is needed to meet the objectives the IMF has set for the restructuring, a person familiar with the talks said on Thursday.
The minister has consistently said that bondholders must accept a writedown on principal as well as coupon cuts and maturity extensions, yet hasn’t previously revealed the details of her proposal.
“This puts the value of Ukrainian bonds at around 45, way below market levels,” Regis Chatellier, a London-based director of emerging-market credit strategy at Societe Generale SA, said by e-mail. “The hope for no haircut on Ukraine debt is/was unrealistic from the point of view of debt sustainability.”
The creditor group’s proposal includes extending maturities by as much as 10 years, temporarily lowering coupons and amortizing principal payments over seven years starting 2019, a person familiar with the proposal told Bloomberg last month.
Jaresko has rejected the offer on the grounds that it assumes Ukraine can make payments out of its reserves, something it says is illegal.
...
“Minister Jaresko has been in possession of a detailed IMF-compliant solution from the bond committee for over a month,” the committee said today. “We are ready and willing to start talks at any time.”
Finally, the hurdles continue Greek-like...
Ukraine must pass three bills relating to its IMF program before it can call a board meeting with the IMF to unlock the next tranche of a $17.5 billion loan from the Washignton-based lender, Jaresko said yesterday. Two laws relate to independence and structure of the central bank, while the third relates to improvements in the ability of the state oil and gas monopoly to collect receivables, she said.
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You forgot to mention that IMF loans are created on a Dell laptop.
Wow, wouldn't that be the Black Swan no one ever saw coming. The Redhead Bastard Coup Country, Ukraine, pulling the string on the Bazillion Dolar Derivitives Mess. Make it so!
What's the drifference between Ukraine and Greece?
crickets
The Russians have deployed nuclear weapons and backfire bombers in what used to be part of Ukraine (Crimea) and have threatened to use said nukes thus forcing NATO to put the option of a pre-emotive nuclear strike on the table.
Since there is nothing of value in Crimea I would recmend leaving so it can be wiped off the map in order to discern Russian "intent."
You do realize that the USA does not have the ability to stop the Russian ICBMs that would arrive stateside shortly after..
He's "disabled" so he doesn't "realize" much...
Once in a while I read something so breathtakingly stupid, that it leaves me wordless....
Crimea is worthless so let's destroy it? Do you know that Crimea is part of Russia and this action would precipitate WW3?
Brother, you need new meds.
What will be the country most hard hit by an Ukrainian default? Hint: starts with a "r" and ends with "ia"
Romania?
Rhodesia?
How old are you? Did you ever have a look at a map over the past 30 years or so?
Rwanda?
Cut the tall trees.
It would have to be Rwandia to match the clue he gave.
Old enough that your wife blew me last week!
I own a tv tray with a map of the world from 1932. It has Rhodesia on it. I know it became Zimbabwe, and if i had 175 quadrillion Zim dollars, i could get 5 american dollars, which would buy me a happy meal at McDonalds.
And the country that will pay for thos losses begins with a G and ends in a Y.
Between Greece and Ukraine, Germany is going to pay, pay, and pay.
If you want gas that is.
The poodle always gets the kicking when things go wrong.
Your Germanophobia is telling. And paying for a commodity is nothing unusual for us Germans. WE can afford it. What is your point exactly?
I think WInston meant it as in as a collateral damage, Germany's gonna get screwed by this whole affair, as in caught in the middle. Not that you guys were cheap, incompetent or anything like that.
Indeed, my German cousins would vouch for no biases.As well as the Swiss and Italian ones.
The Greek relatives, not so much.
Screwd in what way? WE are the only friends of the Russians in central Europe. The Anglos ... not so much. The Poles ... hahahaha. The longer this trouble goes on the better for Germany.
Smug much ?
Countries don't have friends or allies, they have interests.
Merkel severed any interests,and Russia has turned east.
That ship will not be turned now.The Russians have very long memorys.
The Germans have a long memory too. And Merkel serves the German interest perfectly.That´s why some losers from the European periphery hate her with a passion. They know or feel that Germany will be the winner again in this game.
Germany is about to be tossed under a bus. If you think US debt is bad just wait till Germany's bill comes due.
Dream on, my friend.
As a European i gotta say you dont sound like a German. Most Germans i know are pretty sick of Americas bullshit regarding this mess. The vast vast majority of them. They are aware that its the US causing this shit and dragging them in..
My bet is either you are on the fringe there, or you are third generation American German
I´m German and i´m pretty sick of Americas bullshit regarding this mess. Still, Putin is producing a pretty fair amount of BS too these days.
Do you expect the Russians to roll over in the face of such American aggression against them. What should have happened is Europe should have turned its back on the assholes in the USA destabilizing their continent. But now we confirm that European leaders are either bought off or being blackmailed by the Americunts.
No, but the Russians react in a 1950ies Soviet style manner that plays in the cart of `Muricans pretty well, because this gives them a reason to point at you with fingers saying you are the evil and our aggression is justified. You don´t fight an established empire openly, because this is a sure way to lose.
I dunno, America is losing every proxy war it fights, too.
Vietnam - Proxy for France
Afghanistan - Proxy against Russia...which created Osama bin Laden
Iraq/Syria/the Middle East in general - Proxy war created ISIS
Ukraine - Proxy against Russia...gave Crimea to Russia!
whudda doofus
Please elaborate on Putin's BS. A lot of AmeriKan and Euro die-hards in Cold War 2.0 mode say this, but I want to see a comprehensive list so I can judge myself if it is as outrageously retarded and short-sighted as what the USSA is pumping out. Somehow given USSA's steaming turds of the last dozen years, I doubt it.
C´mon, Putin is leading a full blown war in Ukraine, after doing so in Georgia and many other places. He´s starting a new arms race with the West that will blow the Russian economy again. Putin is doing exactly those stupid things that the neocons in DC want him to do so US companies can swallow the Russian resources and commodities for cheap in the end.
Me thinks you had an unhappy childhood... That, and the fact that, as a German, you are still sour 'cause the Russians kicked your ubermensch ass, in WWII.
i'm wondering if he is a veteran of the Hitler Jugend.
Its possible.
Oh nice, after discussing present tasks some troll need to switch to events 70 years ago.
And btw. Russia lost 10 million soldiers in WWII on the eastern front. Germany 3 million. Tell me who kicked whose ass here? But i don´t think those Anglo-American cowards, who were waiting and hiding anxiously till the war was almost over have any right to speak about "kicking ass" anyway. I have a huge respect for the Russian sacrifices in WWII, and they deserved to win. Those anglo cowards just showed up at the end, when the party was almost over, as usual.
Sure doesn't show in you posts.
You guys kicked ass so good that you (or rather your ancestors) missed Moscow and Stalingrad and ended up with the Russians taking Berlin... and keeping it for another 40 years. I thought that only Americans could be so moronic, but you give new meaning to the term dummkopf.
"Merkel serves the German interest"
So German businesses unhappy with losing money and layoffs...is just bullshit?
Merkel serves the AmeriKan interests first it appears.
The German interest is not equal to the interest of some German businesses. The German interest is not to be seperated and isolated at the international level. So Germany will side with the US in most cases for the time being.
Germans are child-like in their naivety. They're so busy trying to prove to the world that they are "good guys now, really" that they don't realize the world doesn't give a shit and is going to fuck them into the ground again as soon as it is convenient to do so.
A nation of childless ultra-liberals hell-bent on national suicide via mass immigration. And they're proud of it, so "green" and "environmentally sound" to forego a family and pay lots of taxes to support the millions of refugees being borught in to replace them. Germany is a nation of barren old women with small dogs run by an old lady.
I love reading all those news articles about the thousands of "Germans" that have gone to join ISIS like the former kick boxing champion from Bavaria. They're about as "German" as Obama bin Laden. Not to mention the Sharia police patrolling the streets of German cities for years now.
I could not bring myself to kick a dog merely because it is French.
And to the French's defense (Yes, you heard the Knukie say that! Defense of the French!) the retired French FinMin did say that the US was taking the whole EU down by the Ukraine policy.
The sanctions approach was the European plan "because we are stupid Americans."
Speak for yourself...
Rhodesia ?
Well it wont be a problem for russia evwn if they default because there was an article in zh: amerucan taxpayers will pay ukraine debt to russia . imf money will be used by ukraine govt to pay 3-4 billuon dues to russia .
R U sure? We´ll see.
Do they have any student loans?
http://www.thenewamerican.com/world-news/europe/item/18298-u-s-taxpayers...
You might not understand yet, but given time the country that will pay the most for what has happened so far will be the US. Give it some time, and you will remember these words and know i was right. What the US has done is the equivalent to burning its lifeboats, at a time when the USA is headed straight for an iceberg. God help ya.
Time to go check on your wife now . Mohammed said her group therapy session went very well .
Normal life is almost impossible in Ukraine. Inflation in Ukraine is at 272%, the hryvnia’s worth at less than 40% of what it was. Inflation has rocketed, salaries have collapsed, businesses across Ukraine have closed. In short, people don’t have any money in Ukraine anymore – sales of new cars down 67% year-on-year – production of cars down 96%, 46 banks declared insolvent in the last year.
As for the eternal thorn in Ukraine’s side, corruption, one which apparently became so pressing one of the defining aims of Maidan was to extricate it – it’s even worse than it was before.
Ukraine’s debt is over $80 billion – set to hit $100 billion soon, 100% and rising of a sinking GDP. An agreed recent IMF bailout programme of $17,5 billion would only scratch the surface. Ukraine’s economy shrunk 7.5%, by conservative estimates, in 2014. Estimates for this year range from 6% to over 20%. European governments pledge support, meanwhile European businesses withdraw on mass, hundreds have already left the Ukrainian market, most of the 600 German firms operating in Ukraine conducting an audit about withdrawing from the market.
Trade with the country which was Ukraine’s leading export and import parter by far, Russia, understandably decimated, Ukraine’s economy is stricken, and only going down.
Excerpted from Ten reasons why Ukraine is dead!
http://thetruthspeaker.co/2015/04/19/10-reasons-ukraine-is-dead/
That is an excellent summation of today's Ukraine. The income figures for average Ukrainians puts them in league with an average poor African Country.
What you point out is being totally Blacked Out by Western Media, on orders from Washington DC.
Small demonstrations have begun, but Right Sector has been crushing them before they gain traction. Just the other day two demonstrations in Kiev were crushed by masked Right Sector men. A gay rights parade was attacked, and gays were chased and beaten. Western media Silient. An anti-corruption demonstration and camp out on the Maidan was attacked in it's second day by masked Right Sector men, tents tore down, people beaten and chased away, Western Media Silent!
But they managed to get rid of Zporoshenko so it must have been orth it. LOL.
Those that thought they would dig a grave for Russia in Ukraine are coming close to falling in it themselves.
The Ukraine reminds me of Detroit funneled with the ghosts of "elite" manufacturing jobs vs the ghosts of affluence before the Dixies were forced to free their slaves.
Or the ghosts of a racially intolerant manufacturing Rust Belt.
The people have drug issues, they put more effort into creating trouble than acquiring human capital which is why corruption continues to run their joints. Then they blame the scapegoats, in the deep south it's blacks. With the Nazis in Kievs- it's going to be Jews.
It cracks me up that the Ukie defense league is trying to call Putin and the Russians the "Nazi".
NO. Race hate and hard drugs is what I've seen from the Ukrainians. Bill Cosby's son Ennis was killed by a racist Ukranian.
The Russians I've crossed paths with were ambitious and studious, and a lot of times very nice and respectful when they came to the U.S. This is the exact opposite from what I've seen from the Ukrainians visiting the U.S. (I've seen rudeness, aggression, no sense of boundaries, disrespect...)
The Russians are not Ukrainians problem. The lack of human capital is their problem.
Look at Asia. Asia is propped up, yes? There's no violent racist hate group in most of Asia which is why they thrive.
There is corruption in Asia but main society is ambitious, not causing dangerous hate crimes. They're working on their education, tech, companies- ASIA'S ECONOMY CAN EXPAND WITHOUT OIL, NATURAL GAS AND PETRODOLLARS!!!
I personally think that's why Asia's success scares special interest.
It appears that Ukraine is a bartering tool for Jaresko's hedge fund and special interest when it's really worth less than toilet paper.
Asia doesn't let subhumans dwell in any of their countries. Hell, you can't even import a Koran into Japan, let alone a Muslim "refugee."
B-b-but that's all just sophistimicated Russian propaganda!
Dumbfuckistan is rich, happy, healthy! And they love Big Brother too!
Time to swoop up a young Ukrainian wife to pop out a few kids and divorce for money/child support a few years later.
why dont they overthrow the bastards in Kiev, before the US Troops become too ensconced there?
Bullish!!!! BTFD!!!!!
The Rada, Ukraine Parliament, has already passed a law allowing government to selectively deny creditors claims. It is by all law a technincal default. But the West has ignored the law, pretending all is well in their new Kiev Junta puppet state. When Bank book losses on Ukraine bonds, then all hell will break loose. The EU banks can not eat losses, they will fold if a big bond issue is defualted.
Jack:
Is there any likely or credible scenario where Putin cashes in the Ukii debt bond of $3 billion?
If that happens will the Ukis try to get it declared odious debt?
I believe the bonds that Russia bought were governed under English (U.K) Law, meaning the Ukies can't just "not pay" and that will be the end of it. The Russians are no dummies, they can hold out and deny the restructurung of Ukie debt unitl they are paid on their terms.
Correct, and the bonds are operated by a long standing English trust company with nerves of steel. That debt is going nowhere!
Owe me $100, shame on you...
Owe me $17.5 billion, shame on me...
if that 17.5 bn is invented by you with nothing but legalized violence to enforce its "legal" status as a "loan"....do you really have that same "problem" you allude to?
Jaresko can suck it.
Brazil BNDES has money b*. Go ask them -they have more to loan than the WorldBank.
That's where your Soros' Petrobias borrowed money from the US ExIm bank.
Or else you can go ask the BOJ.
At least they won't charge you. Their government bondholders might even PAY you to take out a loans since they are the almighty blood thirsty backstabbing sycophants.
The Japanese invented meth to get the violent race hate going.
They love this stuff.
"U.S. Ousts Russia as Top World Oil, Gas Producer in BP Data " http://www.bloomberg.com/news/articles/2015-06-10/u-s-ousts-russia-as-wo...
BP is not correct pergaos . us gas reserves are much lower than russia's so they cant oust russia as top gas supplier .
In addition, the Prime Minister said that the priority is to attract American money for the development of Ukraine's economy.
"Our goal is to attract the maximum number of investors and American money for the development of the Ukrainian economy, to create jobs, restore economic growth in Ukraine", - he said.
they attracted hunter biden already . lol .
Ukraine another bankrupt country worst than Greece . It finds impossible to pay debts and it ask for more of it ? Madness certified !
I think Russia let the EU and the dumb suckers like the State Department own a bottomless pit of run down soviet era industries.Talk about engrained corruption.The U.S. Officials running it are stooges for endless waste.They haven't rebuilt Libya,Afghanistan or Iraq so what in hell do they intend to do with this godamn bullshit?These F'n morons can't even deal with 40 square miles run down industrial wasteland surrounding the City of Detroit so how are these idiots in Washington going to rebuild the Ukraine?Coo-COO.
It's not as if Ukraine is paying anything right now. Default, schmefault. Every time they get money from Uncle Sugar, they spend it on the new Iron Curtain at the Russian border or they start another attack on those pesky separatists in Donbass. Pay the IMF? Yeah, whatever, maybe when they win the lottery.
"Default Threat"
A 'threat' not to do something Greece cannot do. Sounds more like reality than a threat.
A Ukrainian national government of beggars and thieves. No wonder Washington is backing them.
Remind me not to invest in any Franklin Templeton international bond funds.
So you know this hag is trying to finagle a way to pay the Euro/American creditors while making Lemonhead in Moscow take the haircut.
And I'm about as sick of Putin as I am Tsipras.
Next time Chocula launches an offensive, call in the $3 billion bond. Quit coddling Neo Nazis and their Uncle Obama
Yanukovych saw the economic facts as they are and decided to postpone the EU trade deal. West, that itself runs on a premise that perception is all that counts and not some pesky facts, gave him a boot. No amount of lipstick will save this pig from becoming a bacon shortly...
"...following Ukraine's (American) finance minister threats yesterday in Washington that it will default on its debt unless creditors (which include both Russia and the US taxpayer) acquiesce to their demands for more aid (more debt). As Bloomberg reports, the country will stop making payments on its debt if talks don’t make progress, Finance Minister Natalie Jaresko told reporters in Washington Wednesday. "
Gee...why didn't Greece think of that...?
m
Has the going rate for young Ukrainian brides fallen along with the markets?
They are begging to marry US guys by the thousands-they are 'in love' after 2 weeks and on week 3 they want plane tickets to the US
Franklin Templeton and other American funds have bought Ukrainian debt for pennies.
The Ukrainian-American Finance Minister Jaresko shouldn't deal with them in such a demanding manner as they have trillions behind them.
Essentially, these funds know that the USA and Germany will give billions to the Ukraine to pay its debts to the funds. Otherwise, they will get Ukrainian land and factories in exchange for debts.
That's how America crashes the Ukraine.
JEWHAD IS ON