Ukraine

Ukraine’s top Cabinet official panned slow progress from the International Monetary Fund in moving ahead with a new assistance package for the war-torn nation, Bloomberg News reported. Prime Minister Denys Shmyhal gave credit to the IMF for its abundant past support of Ukraine, including in 2014-2015 after Russia annexed the Crimean peninsula and fomented military conflict in the country’s east.

Ukraine's President Volodymyr Zelenskiy yesterday thanked the European Union for confirming 5 billion euros ($4.97 billion) in macro-financial aid but said the country needed a "full-fledged" program of financing from the International Monetary Fund, Reuters reported. Zelenskiy made the comments in a Twitter post following a conversation with German Chancellor Olaf Scholz, who he said discussed plans to further strengthen Ukraine's defence capabilities. It was not immediately clear what Zelenskiy meant by a "full-fledged" program.

A panel of investors on Friday determined Ukraine had triggered a restructuring event after a two-year sovereign debt freeze, and a default insurance known as Credit Default Swap (CDS) should be payed, Reuters reported. The Credit Derivatives Determinations Committee (CDDC) said that its members voted 'yes' to a question to determine whether a "Restructuring Credit Event" occurred with respect to Ukraine and that a CDS auction should be held, according to a statement on its website. The committee still hasn't decided on the timing of the auction.

The International Monetary Fund is tapping for a key role in talks with Ukraine the economist who led negotiations with Argentina to rescue its record loan, as the lender of last resort seeks to help the European country upended by Russia’s invasion, Bloomberg News reported. Julie Kozack is set to oversee and guide the staff team dealing with Ukraine after she becomes a deputy director of the European department next month, according to the fund.

Factories in Russian-occupied areas of the Ukraine were packed up and moved on trains and trucks, and are being resurrected in the west, the New York Times reported. Manufacturers are creating jobs and hunting for skilled workers. Now closer to Poland — Ukraine’s gateway to Germany and western Europe — the reborn businesses are forging ties with the European Union, which Ukraine hopes to join soon. “The main motivation for them to come here is that they stay in Ukraine,” said Andriy Moskalenko, the deputy mayor of Lviv responsible for economic affairs.

Ukraine's overseas creditors have backed its request for a two-year freeze on payments on almost $20 billion in international bonds, according to a regulatory filing on Wednesday, a move that will allow the war-torn country to avoid a debt default, Reuters reported. With no sign of peace or a ceasefire on the horizon nearly six months after Russia's invasion began on Feb. 24, bondholders have agreed to postpone sovereign interest and capital payments for 13 Ukrainian sovereign bonds maturing between 2022 and 2033.

Ukraine has formally requested new assistance from the International Monetary Fund, seeking funds to help weather a severe wartime recession and a large cash shortfall, WSJ Pro Bankruptcy reported. The government submitted a proposal for an IMF program on Friday, it said. Ukraine added that it expects to receive help by November or December but didn’t say how much it is requesting.

Ukraine's creditors vote this week on a government proposal to defer payments on the war-torn country's international bonds for 24 months as Kyiv hopes to swerve a $20 billion messy default, Reuters reported. Bondholders have until 5 p.m. New York time (2100 GMT) on Tuesday to decide whether to back or vote down the proposal by Ukraine's government, which faces a $5 billion monthly financing gap and liquidity pressures following Russia's invasion on Feb. 24. Time is precious: the country has a $1 billion bond maturing on Sept. 1.

Ukraine is fighting for its survival and is desperate for cash, but that isn’t deterring London hedge-fund manager Richard Deitz from demanding money back from an ill-fated investment there, the Wall Street Journal reported. Mr. Deitz’s VR Capital has a long history of making money in countries going through upheaval. His fund paid $123 million in 2019 to buy distressed loans issued by state-owned Ukrainian Railways, hoping they could work out a repayment and get a double-digit return.