While Ukrainian leader Volodymyr Zelensky continues to pose as a ‘current day Churchill’ and seems in no particular hurry to end a war that has decimated his population, both the military and the economic situation of his country are rapidly deteriorating.
And it’s not only in the war negotiations and the ‘minerals deal’ that Ukraine fails to reach agreements in negotiations.
Kiev announced yesterday (24) that it had failed to reach a deal with creditors holding of $2.6bn of its debt, dashing its hopes of a restructuring agreement ahead of a May payment deadline.
Financial Times reported:
“The country’s finance ministry said it would ‘consider all available options’ on a restructuring and continue negotiations after the failure of opening talks in Washington this week with a group of holders of its so-called GDP warrants.”
Ukraine faces DEFAULT in just one month
Kiev has failed to restructure $2.6 billion in debt, substantially raising the risk of default by late May — FT
Could this pressure Zelensky to cooperate more? pic.twitter.com/Dzu3mWSpnA
— RT (@RT_com) April 24, 2025
“The warrants were left out of last year’s restructuring, given their complexity, but Kyiv needs to strike a deal on them to avoid potentially billions of dollars flowing out of its finances in the years ahead.”
The payouts from these warrants are tied to Ukraine’s annual economic growth, which is expected to surge strongly if there’s a ceasefire with Russia.
“Kyiv will have to decide whether to default on a payment of close to $600mn that is due at the end of May, linked to the economy’s performance in 2023, if it is unable to reach a deal on a restructuring before then.”
Ukraine and a group of hedge fund-led creditors failed to agree on restructuring $3.2 billion in growth-linked debt ahead of next month’s payment. pic.twitter.com/gLZP18Loyu
— D.A. Market Online Trading (@itradeph) April 24, 2025
Warrant holders get a payout if annual growth exceeds 3 per cent. But now, Kiev argues that the damage done to the economy by the war has nullified this.
“’The GDP warrants were designed for a world that no longer exists’, said Ukraine’s finance ministry on Thursday. ‘Ukraine’s modest economic growth in 2023 was not a sign of surging prosperity but a fragile rebound from a nearly 30 per cent downturn caused by Russia’s full-scale invasion’.”
As Ukraine faces default, Olena Zelenska purchases a $2.9M dress from Meghan Markle!
The sale coincides with Prince Harry’s visit to Ukraine. This dress previously belonged to Princess Diana! pic.twitter.com/hhuLNZoKVr
— Johnny Midnight
(@its_The_Dr) April 24, 2025
Read more from 2024:
Peter Sweden: IT’S SPREADING – Massive Farmers Protest in Germany (Video)
The post If Ukraine Can’t Reach Agreement With Investors To Restructure 2.6B in Debt, It May Default $600M Payment Due in May appeared first on The Gateway Pundit.