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Cash-strapped Ukraine faces backlash from Wall Street in debt talks: sources

Ukraine faces a new battle on the economic front. This time around, the war-torn country owes more than millions of dollars in interest payments on its debt to Wall Street, says The Post. Have learned.

Volodyr Zelensky's cash-strapped government wants to restructure $3 billion in bonds, about $75 million to a lending group that includes Franklin Templeton, BlackRock and Aurelius Capital Management. We are also seeking approval to postpone the dollar interest payment until August 9th. , said a source with direct knowledge of the situation.

As Russian tycoon Vladimir Putin struggles to fend off his February-launched invasion, Ukraine is forced into a monthly Lost $5 billion. In addition to military weapons, the US is sending Zelensky $1.5 billion each month to offset the economic impact, the sources added. Why is the desire to make a profit for the lenders outweigh the desire to save the world from calamity?” said the source.

A heavily damaged apartment building in Ukraine.
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Jenny Johnson, president and chief executive officer of Franklin Templeton.
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Meanwhile, lending groups are willing to delay their next interest payment to avoid bankruptcy in the needy country. is still opposed to Ukraine's demand to settle the debt within the next few years, said a source close to the creditor.

"We are happy to defer payment, but that doesn't mean they should have the right to renegotiate the contract," the source said.

Ukraine agreed to her extraordinary $3 billion loan with no principal when it was on the brink of bankruptcy in 2015. The terms will allow the lender to recover his 40% of the country's total assets from 2025. Annual domestic production if above $125 billion and growing at least 4% per year.

Wall Street Charging Bull statue
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In 2021 JP Morgan expects bond value to be around $8 But that was before Putin's army shelled the country and ravaged trade. According to the International Monetary Fund, Ukraine's GDP has slumped to its all-time high of $100 billion after hitting $200 billion last year.

Ukraine hopes to pay off its debt in full in 2025, 2026 or 2027 before annual payments on bonds maturing in 2039 can become burdensome. It will make it easier for financially-strapped governments to raise new funds, sources said.

The country says he is working with JP Morgan and law firm White Case to try to convince enough lenders to restructure their bonds by August 9. A source close to the lender said. The lender, who holds 75% of his $3 billion bond, would have to agree to any changes, the sources said.

"The opposition is growing," said a source. "This may not work."

A crater on the field of the Chernihiv Stadium in Ukraine.
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Ministry of Ukraine last month said it had "received explicit indications" of the plan's support from some lender groups, including BlackRock.

There was no mention of Aurelius, who made a fortune on bad debts of sovereigns and was known to sue Puerto Rico and Argentina to pay off their bonds in full.

Neither was Franklin. In 2015, the company owned more than one-third of his loans and was still a lender, but could be at a smaller level, sources said.

Aurelius logo
Aurelius made a ton of money off sovereign bad debts and is known to have sued Puerto Rico and Argentina, so he could pay off the bonds in full. I can do it.

Franklin and Blackrock declined requests for comment when contacted by the Post.

Aurelius did not request comment.

So far, no lender has earned him a penny on the investment, according to sources.

"The risk of bonds has been the downside that we are experiencing today," said a source close to the government.