Posted on 06/02/2025 10:16:14 PM PDT by NoLibZone
LONDON/KYIV (Reuters) -Ukraine's finance ministry said on Friday it would not be paying more than half a billion dollars due to holders of its GDP warrants, marking the first payment default since it created the instruments.
The war-ravaged country said it owes $665 million on June 2 to holders of the $3.2 billion worth of warrants, based on 2023 economic performance.
Last year, Ukraine's parliament approved a payment moratorium on the GDP-linked securities from May 31.
"Ukraine remains committed to implementing a comprehensive, fair and equitable restructuring of the GDP-linked Securities," it said in a statement, adding it must comply with debt targets outlined in its IMF programme and in line with the comparability of treatment with official lenders.
(Excerpt) Read more at msn.com ...
What a mess.
Looks like it won’t matter in the long run. When the dust settles, Russian forces will be looking across a DMZ into Poland form Wester Kiev.
An “explainer”:
I want our money and military hardware that dick biden gave them.
This economic implosion is almost perfectly timed to coincide with an impending military collapse at the worst possible time as Russia ramps up its military campaign to defeat Ukraine on the battlefield
Worse, an ungrateful Zelensky has done everything possible to alienate the America that has been floating pretty much the entire Ukrainian economy. In the process Zeldnsky has done everything possible to frustrate President Trumps generous peace efforts
Seems he is expecting his best buds Starmer, Macron and Merz along with the rest of the EU to bail him out
Good luck with that.
The Ukraine is about to face a day of reckoning and the world is full leaders leaders just waiting for the day when the cocky, arrogant and abusive Zelensky shows up at their door step on his knees begging instead of strutting in and insulting them with extravagant demands
I guess all dem drones be expensive?
The debt won’t matter if Putin decides to nuke them.
Maybe the private-playing piano player could ask for that.
But I was assured that it was already paid back/would be paid back/ abracadabra/poisonous potato etc.
Amazing.
Bump!
Ukraine Big Bump!
The Putinistas be dancing in the streets.
Apparently we’re not sending them enough “free” money.
Definitely a sign of significant strain on the Ukraine.
This is likely not a crushing problem.
In the early 2010s Greece had a total disaster problem, involving issues that were systemic — meaning if they went down the entire world would go down.
The triumvirate, EU, IMF, ECB came up with a solution. More money would be loaned to Greece, involuntarily, and the new loan in question was carefully specified to be used to pay interest/payments on currently existing loans. So Greece was forced to have more and more debt, despite internal votes saying no, and that debt did not go to the people. It went to foreign bond holders in order to avoid a systemic credit event.
And so, this will be done with Ukraine. They will be informed that they are going to borrow more money to be used strictly to service current debt.
This is a poison pill, btw. It is yet another reason Russia will not want to “take possession” of Ukraine. They would inherit that debt. So preferable is a pro Russia Ukrainian military junta that will probably just default.
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