Ukraine refused to pay $ 665 million to holders of GDP warrants — Bloomberg

Ukraine will miss a $665 million payment on the national debt after it failed to agree on its restructuring with a group of creditors led by hedge funds. This is reported by Bloomberg.

Missing a payment is actually a default on these bonds.

Kiev last year agreed with investors to remove the cross-default clause between the so-called GDP warrants and its usual international bonds. This protects against a scenario in which the default on one instrument is transferred to another debt.

Warrants, 20% of which belong to Ukraine, reward investors when real economic growth exceeds 3% per year, and the payment due on June 2 is related to economic growth in 2023. However, on Friday, the Ukrainian Finance Ministry said that the moratorium on bond payments introduced last year would remain in effect until the restructuring of this debt was completed, the agency reports.

"Ukraine remains committed to implementing a comprehensive, fair and equitable restructuring of GDP—linked securities," the country's Finance Ministry said in a statement.