30.03.2015 - London or Paris: which is the club for Russia's Ukraine debt?
Russia lent Ukraine the $3 billion in December 2013 out of its “rainy day” sovereign wealth fund, structuring the debt as a two-year Eurobond governed by London law. That, experts agree, was a canny move, firstly because of the complexity of restructuring Eurobond debt, and secondly, because of an unusual clause allowing Russia to demand repayment early if Ukraine’s debt exceeded 60 percent of annual economic output. So far Moscow has not demanded the money even though it is probably entitled to do so. Instead it seems intent on tightening the screws in another way - by declaring the bond to be bilateral sovereign debt and therefore not subject to the private creditor “bail-in”...............................................Full Article: Source
Print