Wednesday, March 5, 2014

In Ukraine, the Banksters Win

Ukraine’s acting finance minister said today that the country was seeking to restructure its debt but wouldn’t default on the foreign-currency bonds it sold abroad. “We are taking about restructuring in general. We will restructure [debt] where it is possible. We are not talking about Eurobonds,” Oleksandr Shlapak told WSJ.

News reports earlier in the day suggested Ukraine might restructure its foreign-currency denominated debt, large portions of which are held by Western banksters. That made prices of Ukrainian bonds swing wildly. But Shlapak said those bonds wouldn't be touched.

Instead, he said, may try to restructure debt sold locally, or seek relief on its liabilities to the International Monetary Fund.

Ukraine is servicing its obligations in full and on time, and is not considering any restructuring or exchange of its short-term debt, the finance ministry said in a statement posted to its website.

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