Ukraine

Ukraine announced a moratorium on the $3bn bond held by Russia’s National Welfare Fund on Friday. The moratorium also covers Ukraine’s sovereign-guaranteed loans for Ukravtodor and Yuzhnoye.

Bondholders have approved the restructuring proposal for the City of Kiev 2016s and extended the deadline for approval of restructuring of its 2015 Eurobonds.

Holders of City of Kiev’s Eurobonds could reject restructuring proposals at a meeting in London on December 8, according to analysts in Ukraine.

Ukraine’s Privatbank has received approval from the High Court of England and Wales for a restructuring deal approved by holders of its subordinated Eurobonds.

Ukraine this week received the necessary votes to restructure 13 of the 14 Eurobonds it targeted, with the leaving just the problem of a Russian-held $3bn bond to be solved. But even with an end to the restructuring odyssey in sight, CEEMEA watchers are worried about the economic outlook and the nature of the restructuring agreement.

The Russia and Ukraine finance ministers discussed the latter’s Eurobond restructuring agreement at the IMF meetings in Peru. But neither seems willing to ask the IMF to rule on the status of a $3bn Ukrainian Eurobond sold to Russia, said analysts.

Banks on Tuesday settled credit default swaps referencing the Republic of Ukraine at 80.625, the highest recovery on a sovereign credit event auction since they began in 2005.

Eastern Europe is generally viewed by credit investors as one of the safer segments of the increasingly shaky emerging markets asset class. But the aggressive presence of Russia poses risks, as its neighbours know all too well.

Banks on Tuesday settled credit default swaps referencing the Republic of Ukraine at 80.625, the highest recovery on a sovereign credit event auction since they began in 2005.

A credit event auction on Tuesday for swaps referencing the Republic of Ukraine will be the fastest that has ever been put together in the history of the derivatives contract, lawyers have said.

Ukrainian steelmaker Metinvest has been notified that holders of in excess of 50% of the outstanding principal amount across its $85.2m 10.25% 2016s, $289.7m 10.5% 2017s and $750m 8.85% 2018s have formed an ad hoc committee.

The Ukrainian government has released the exchange offer for its sovereign Eurobonds, amended from what was previously announced.