Ukraine to default on payment to GDP warrant holders

[mountaineer]

Ukraine to default on payment to GDP warrant holders
By Libby George, Olena Harmash and Marc Jones
May 30, 2025
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.  ...

Ukraine's economy cratered after Russia's full-scale invasion in 2022, falling close to 30%. And while its economy staged modest growth in 2023 and 2024, its gross domestic product remains below the pre-war level.

Finance Minister Serhii Marchenko described the warrants, with a payout linked to growth, as "designed for a world that no longer exists".

Formal restructuring talks between Ukraine and warrant holders broke down in late April, with the two sides far from a deal. Chief debt negotiator Yuriy Butsa privately met with individual warrant holders in London earlier this month to prepare them for non-payment and emphasize that Ukraine would rather take time to get the right deal than rush to a quick deal before the deadline.

A cross-default clause with the country's bonds was removed last year during restructuring, but the payment default threatens the years Butsa and his team have spent cultivating a positive relationship with investors.  ...

[mountaineer]

@amuse
@amuse
UKRAINE: Meet the men who may soon own Ukraine. Zelensky defaulted on a $655 million sovereign debt payment to a group of creditors led by several hedge funds. When governments collapse it comes quickly and unexpectedly. Russia's goal is to keep the pressure on Ukraine until that happens - Putin knows he can outlast Zelensky and the collapse will create an opportunity for a more Russia-friendly government to form. This default might just be the start of that.
9:42 AM · May 31, 2025

[GtHawk]

Probably looking to sucker America to pay their debt.

[Hoodat]

$650 million is a drop in the bucket compared to the tens of billions siphoned off to Biden cronies through USAID, the State Dept, and DoD.  It sucks when the American President announces to the world all the aid packages heading your way only to discover that nothing is being sent.

[DB]

The hedge fund lenders bet on high returns in a country that has been largely destroyed by an invading army and their investments went bad. Too bad for them.

[GtHawk]

$650 million is a drop in the bucket compared to the tens of billions siphoned off to Biden cronies through USAID, the State Dept, and DoD.  It sucks when the American President announces to the world all the aid packages heading your way only to discover that nothing is being sent.

Ah, well, that would make it okay then right, because what’s a little more screwing of the American taxpayer’ children’s  children’s children’s children?

[DB]

Ah, well, that would make it okay then right, because what’s a little more screwing of the American taxpayer’ children’s  children’s children’s children?

None of the defaulted payments are to or from US taxpayers. Biden and crew ripping off US taxpayers has zip to do with this.

[Cyber Liberty]

The hedge fund lenders bet on high returns in a country that has been largely destroyed by an invading army and their investments went bad. Too bad for them.

I agree with you.  Not our circus, not our monkeys.