As with Greece, Ukraine debt swap may not be the last word

jueves 3 de septiembre de 2015 13:40 GYT
 

* Debt write off, extensions far less than expected

* But generosity to bondholders raises worries

* Some people see parallels with Greece

* Athens seeking yet more relief despite 2012 deal

By Sujata Rao

LONDON, Sept 3 (Reuters) - Bondholders cheering Ukraine's debt swap face the risk that Kiev will return to the bargaining table within a few years, following the path Greece trod after its 2012 restructuring.

Ukraine's sovereign bonds have rallied 40 percent to trade up to 75 cents per dollar of face value following the Aug. 27 agreement which wrote off a fifth of the $18 billion principal and lengthened maturities by four years.

Both the writeoff and the repayment extensions were far less than predicted, a pleasant surprise for fund managers who had prepared for bigger losses on their Ukraine bond holdings.

The deal, which aims to cut Ukraine's debt to 71 percent of annual economic output (GDP) by 2020 from an estimated 100 percent now, was further sweetened by higher interest rates to be paid on the bonds and the promise of additional payouts after 2020, if economic growth hits certain targets..   Continuación...