Ukraine creditor group reveals members, repeats objection to 'haircut'

Ukraine creditor group reveals members, repeats objection to 'haircut'


Negotiations to restructure some $23 billion worth of Ukrainian debt have soured in the past week after the creditor group repeated objections to any writedown on the principal owed and Kiev said that stance lacked "good faith".

Ukraine's side of the argument has since been bolstered by comments from former U.S. Treasury Secretary Lawrence Summers, who accused the group of being "selfish" and criticized it for not disclosing its membership apart from largest bondholder Franklin Templeton.

In an emailed statement, the committee revealed all the funds it represents and repeated objections to any 'hair-cut.'

It said the creditor committee comprised funds managed or advised by BTG Pactual Europe, Franklin Advisers, TCW Investment Management Company and T. Rowe Price Associates, which hold approximately $8.9 billion of Ukrainian debt.

"The Committee and their advisers are in regular contact with additional holders of the Notes who, together with the Committee, represent in excess of $10 billion of Ukrainian debt," it added.

The deal put forward by Kiev foresees extending the maturity of the bonds and reducing the principal and the coupon.

On Friday, Finance Minister Natalia Yaresko appealed to bondholders to be constructive and said face-to-face talks were needed in the "very near future".

The group said it was pleased Ukraine wanted to accelerate negotiations. "The Committee sees no reason why substantive discussions on this important issue should not commence immediately."

The dollar-denominated 2023 issue gained 0.25 cents to change hands at 48 cents in the dollar .

The cost of insuring exposure to Ukrainian debt through 5-year credit default swaps has risen to 3239 basis points from the Friday close of 3127, according to data provider Markit.

(Story refiles to remove extraneous word in first paragraph)

(Reporting by Alessandra Prentice; Additional reporting by Karin Strohecker; Editing by Robin Pomeroy)