Ukraine’s official debt restructuring strategy looks like arm-twisting: either the creditors accept the haircut and other terms, say the officials, or the country defaults. No other options are on the table. The IMF-led bailout is conditional upon the success of a debt deal that must be reached in less than 20 days now. In addition to the uncertain outcome of fighting in eastern Ukraine, the country’s economic and reform prospects depend on the outcome of rising domestic political tensions, a surge in violence, and behind-the-scenes battles among the oligarchs.
A different approach to debt restructuring is needed—one that doesn’t erode the value or the trust of international investors.
Please read more about the possible options here: