After five months of negotiations, Ukraine reached an agreement with its creditors for the restructuring of its public debt. The agreement provides for the cancellation of 20% of the debt, approximately 3,6 billion dollars, an increase in rates to an average of 7,75% from the current 7,2% and a four-year extension of the repayment term. This was announced today by the Ministry of Finance of Kiev.
The Ukrainian prime minister, Arsei Iatseniouk, expressed his satisfaction with the result achieved, underlining that the agreement allowed the country to avoid a default "expected by enemies". The reference, of course, is to Russia.
Iatseniouk also said that the conditions that have arisen from Ukraine are unprecedented. Last week some US investors, holders of part of the Ukrainian debt, had rejected a proposal for a haircut of the country's debt equal to 40 percent.
"No country that has not declared default has obtained these conditions", declared the prime minister from Kiev, underlining the validity of the conditions selected by the finance minister.
