Ukraine reaches preliminary deal with bondholder group on $20-billion debt restructure

Ukraine reaches preliminary deal with bondholder group on $20-billion debt restructure
A general view of central Kharkiv, amid Russia's attack on Ukraine. (Reuters/File)
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Updated 23 July 2024
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Ukraine reaches preliminary deal with bondholder group on $20-billion debt restructure

Ukraine reaches preliminary deal with bondholder group on $20-billion debt restructure
  • Ukraine’s finances are precarious as its 28-month war with Russia drags on. Russia’s 2022 invasion decimated its economy, leaving it heavily reliant on money – and military aid – from international partners

LONDON: Ukraine said on Monday it had reached an agreement in principle with a group of creditors to restructure $20 billion of international bonds, bringing the war-torn country closer to an unprecedented debt rework.
Ukraine’s announcement comes just over a week before a two-year debt suspension agreement struck in 2022 is due to run out and marks the first time a country has embarked on a debt restructuring during a full-scale war.
“After months of engagement and hard work with our private bondholders, the IMF and our bilateral partners, we have reached an agreement in principle with the Ad Hoc Creditor Committee on the comprehensive restructuring of our public external debt,” Finance Minister Serhiy Marchenko said in a statement.
This was an important step to ensure Ukraine maintained the budget stability and cash resources needed to continue financing its defense, he added.
Ukraine’s finances are precarious as its 28-month war with Russia drags on. Russia’s 2022 invasion decimated its economy, leaving it heavily reliant on money – and military aid – from international partners.
The US presidential election in November and the risk of wavering commitment to maintain support for Ukraine under a potential Donald Trump presidency increased pressure for a debt restructuring, sources close to the talks and analysts said.
The proposal would see a 37 percent nominal haircut on Ukraine’s outstanding international bonds, saving Kyiv $11.4 billion in payments over the next three years — the duration of the country’s program with the International Monetary Fund set to expire in 2027, according to government statements.
The government said the IMF had confirmed that the deal was compatible with the parameters of its $122 billion support package, and that the country’s official lenders, the Group of Creditors of Ukraine (GCU), had also signed off on it.
A spokesperson for the Paris Club of creditor nations, which usually handles communications for the GCU, confirmed the group was comfortable with the proposal.
The IMF welcomed the agreement and confirmed it is consistent with the current program, adding that it will be “essential to bring Ukraine’s debt burdens to sustainable levels, thereby ensuring room for critical spending and supporting growth.”
Ukrainian Prime Minister Denys Shmyhal said in a message on the Telegram app that the deal would free up resources for urgent needs, including defense, social protection and recovery.
A source at the Germany finance ministry welcomed the draft agreement and said it was a key step to preserve the Ukraine government’s ability to act and plan ahead.
The Ad Hoc Creditor Committee, which holds 22 percent of the country’s sovereign bonds, called the agreement “swift and constructive.”
“We are pleased to be able to provide significant debt relief to Ukraine, assist its efforts to regain its access to international capital markets, and support the future reconstruction,” it said in a statement.
RACING TO THE FINISH
Under the proposal, some of the new bonds issued would start paying a 1.75 percent coupon from next year, with payments stepping up to as much as 7.75 percent from 2034 onwards. Bondholders are also in line to receive a consent fee.
Interest payments had been a sticky issue in the talks. Bondholders sought financial inducement to agree to a rework, while Ukraine’s international partners such as Group of Seven nations and the IMF objected to large amounts of money being funnelled to private lenders and away from strained government finances.
Payments to bondholders under the deal would amount to less than $200 million through to end-2025.
While the bonds have a face value of $19.7 billion, Ukraine owes around $23 billion with past due interest.
The international bonds soared more than 5 cents after the announcement, with most maturities trading around the 35 cents mark and at their strongest in about two years.
Ukraine’s $2.6 billion GDP warrants — fixed-income instruments with payouts linked to the strength of economic growth — were not part of the restructuring, though the government said it would “ensure the fair and equitable treatment of holders of the Warrants.”
Bondholders will vote on the proposal in coming weeks. If enough sign off, the government will issue new bonds.
A first payment in the wake of the two year moratorium is due on Aug. 1, but Ukraine last week passed a law allowing it to miss payments — and enter debt default, even temporarily — while the agreement is finalized.
The debt deal would be Ukraine’s second in a decade triggered by its neighbor: Ukraine restructured in 2015 following Moscow’s annexation of Crimea.
“Once completed, this restructuring will also pave the way for Ukraine’s market re-entry as soon as possible when the security situation stabilizes to fund our country’s swift recovery and reconstruction,” Marchenko said in the statement.


Trump says he has spoken to Putin about ending the Ukraine war

Trump says he has spoken to Putin about ending the Ukraine war
Updated 17 sec ago
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Trump says he has spoken to Putin about ending the Ukraine war

Trump says he has spoken to Putin about ending the Ukraine war
  • Trump said last week that the war was a bloodbath and that his team had had ‘some very good talks’
  • US president has repeatedly said he wants to end the war and that he will meet Putin to discuss it

MOSCOW: US President Donald Trump said he has spoken to Russian President Vladimir Putin by phone about ending the war in Ukraine, the New York Post reported, the first known direct conversation between Putin and a USpresident since early 2022.

Trump, who has promised to end the war in Ukraine but not yet set out in public how he would do so, said last week that the war was a bloodbath and that his team had had “some very good talks.”

In an interview aboard Air Force One on Friday Trump told the New York Post that he had “better not say,” when asked how many times he and Putin had spoken.

“He (Putin) wants to see people stop dying,” Trump told the New York Post. The White House did not respond to a request for comment outside normal business hours.

Kremlin spokesman Dmitry Peskov told the TASS state news agency that “many different communications are emerging.”

“These communications are conducted through different channels,” Peskov said when asked by TASS to comment directly on the New York Post report. “I personally may not know something, be unaware of something. Therefore, in this case, I can neither confirm nor deny it.”

The conflict in eastern Ukraine began in 2014 after a pro-Russian president was toppled in Ukraine’s Maidan Revolution and Russia annexed Crimea, with Russian-backed separatist forces fighting Ukraine’s armed forces.

Putin sent thousands of troops into Ukraine in 2022, calling it a “special military operation” to protect Russian speakers in Ukraine and counter what he said was a grave threat to Russia from potential Ukrainian membership of NATO.

Ukraine and its Western backers, led by the United States, said the invasion was an imperial style land grab and vowed to defeat Russian forces.

Moscow controls a chunk of Ukraine about the size of the American state of Virginia and is advancing at the fastest pace since the early days of the 2022 invasion.

Trump-Putin summit?

Trump, author of the 1987 book “Trump: the Art of the Deal,” has repeatedly said he wants to end the war and that he will meet Putin to discuss it, though the date or venue for a summit is still not publicly known.

Saudi Arabia and the United Arab Emirates are seen by Russia as possible venues for a summit, Reuters reported earlier this month.

On June 14, Putin set out his opening terms for an immediate end to the war: Ukraine must drop its NATO ambitions and withdraw its troops from the entirety of the territory of four Ukrainian regions claimed and mostly controlled by Russia.

Reuters reported in November that Putin is open to discussing a Ukraine peace deal with Trump but rules out making any major territorial concessions and insists Kyiv abandon ambitions to join NATO.

The Kremlin has repeatedly urged caution over speculation about contacts with the Trump team over a possible peace deal.

Leonid Slutsky, head of the Russian parliament’s international affairs committee, was cited by the state RIA news agency on Thursday as saying that preparations for such a meeting were at “an advanced stage” and that it could take place in February or March.

Putin last spoke to former US President Joe Biden in February 2022, shortly before Putin ordered thousands of troops into Ukraine. The two leaders spoke for about an hour then, the Kremlin said.

Washington Post journalist Bob Woodward, in his 2024 book “War,” reported that Trump had direct conversations as many as seven times with Putin after he left the White House in 2021.

Asked if that were true in an interview to Bloomberg last year, Trump said: “If I did, it’s a smart thing.” The Kremlin denied Woodward’s report.

On Friday, Trump said he would probably meet Ukrainian President Volodymyr Zelensky next week to discuss ending the war.

Trump told the New York Post that he has “always had a good relationship with Putin” and that he has a concrete plan to end the war. But he did not disclose further details.

“I hope it’s fast,” Trump said. “Every day people are dying. This war is so bad in Ukraine. I want to end this damn thing.”


One dead, dozens missing in China landslide

One dead, dozens missing in China landslide
Updated 09 February 2025
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One dead, dozens missing in China landslide

One dead, dozens missing in China landslide
  • China has been hit with extreme weather in recent months, with dozens of people killed in floods last year
  • Scientists say climate change is making extreme weather events more frequent

SHANGHAI: A landslide in China’s southwestern Sichuan province triggered by heavy rain has killed at least one person, with nearly 30 more missing, state media said Sunday.
China has been hit with extreme weather in recent months, with dozens of people killed in floods last year, its warmest on record.
Scientists say climate change is making extreme weather events more frequent.
Saturday’s landslide hit Jinping village in the city of Yibin at around 11:50 a.m. (0350 GMT).
As of Sunday morning, “one person has been killed and 28 people are missing,” state news agency Xinhua said.
Two people were saved on Saturday and more than 900 rescuers are attempting to find the rest of the missing people, Xinhua said.
Video footage published by state broadcaster CCTV earlier on Sunday showed rescuers with flashlights searching through debris in the dark.
“A preliminary study shows this disaster occurred due to the influence of recent prolonged rainfall and geological factors,” CCTV said, citing local authorities.
President Xi Jinping ordered authorities on Saturday to do “everything possible to search for and rescue missing people, minimize casualties, and properly handle the aftermath.”


Bangladesh crackdown on ex-regime loyalists

Bangladesh crackdown on ex-regime loyalists
Updated 09 February 2025
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Bangladesh crackdown on ex-regime loyalists

Bangladesh crackdown on ex-regime loyalists

DHAKA: Bangladesh on Sunday launched a major security operation after protesters were attacked by gangs allegedly connected to the ousted regime of ex-leader Sheikh Hasina.
A government statement said the operation began after gangs “linked to the fallen autocratic regime attacked a group of students, leaving them severely injured.”
Jahangir Alam Chowdhury, head of the interior ministry in the interim government that took over after Hasina was ousted in the August 2024 student-led revolution, has dubbed it “Operation Devil Hunt.”
“It will continue until we uproot the devils,” Chowdhury told reporters.
The sweeping security operations come after days of unrest.
On Wednesday, six months to the day since Hasina fled as crowds stormed her palace in Dhaka, protesters smashed down buildings connected to her family using excavators.
Protests were triggered in response to reports that 77-year-old Hasina — who has defied an arrest warrant to face trial crimes against humanity — would appear in a Facebook broadcast from exile in neighboring India.
Buildings destroyed included the museum and former home of Hasina’s late father, Bangladesh’s first president Sheikh Mujibur Rahman.
The interim government blamed Hasina for the violence.
On Friday, interim leader and Nobel Peace Prize winner Muhammad Yunus also pleaded for calm.
“Respecting the rule of law is what differentiates the new Bangladesh we are working together to build, from the old Bangladesh under the fascist regime,” Yunus said in a statement.
“For the citizens who rose up and overthrew the Hasina regime ... it is imperative to prove to ourselves and our friends around the world that our commitment to our principles — respecting one another’s civil and human rights and acting under the law — is unshakable.”
Hours later, members of the Students Against Discrimination — the protest group credited with sparking the uprising against Hasina — were attacked in the Dhaka district of Gazipur.
The vocal and powerful group — whose members are in the government cabinet — had since demanded action.


Trump says some white South Africans are oppressed, could be resettled in the US. They say no thanks

Trump says some white South Africans are oppressed, could be resettled in the US. They say no thanks
Updated 09 February 2025
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Trump says some white South Africans are oppressed, could be resettled in the US. They say no thanks

Trump says some white South Africans are oppressed, could be resettled in the US. They say no thanks
  • Trump administration accused the South African government of allowing violent attacks on white Afrikaner farmers and introducing a land expropriation law targetting minority farmers
  • President Ramaphosa’s government denied claims of concerted attacks on white farmers, says Trump’s description of the new land law is full of misinformation and distortions
  • Afrikaner lobby group AfriForum, representing some of the Africaners, thanked Trump but rejected the offer, saying, “We don’t want to move elsewhere”

CAPE TOWN, South Africa: Groups representing some of South Africa’s white minority responded Saturday to a plan by President Donald Trump to offer them refugee status and resettlement in the United States by saying: thanks, but no thanks.
The plan was detailed in an executive order Trump signed Friday that stopped all aid and financial assistance to South Africa as punishment for what the Trump administration said were “rights violations” by the government against some of its white citizens.
The Trump administration accused the South African government of allowing violent attacks on white Afrikaner farmers and introducing a land expropriation law that enables it to “seize ethnic minority Afrikaners’ agricultural property without compensation.”
The South African government has denied there are any concerted attacks on white farmers and has said that Trump’s description of the new land law is full of misinformation and distortions.
Afrikaners are descended from mainly Dutch, but also French and German colonial settlers who first arrived in South Africa more than 300 years ago. They speak Afrikaans, a language derived from Dutch that developed in South Africa, and are distinct from other white South Africans who come from British or other backgrounds.
Together, whites make up around 7 percent of South Africa’s population of 62 million.
‘We are not going anywhere’
On Saturday, two of the most prominent groups representing Afrikaners said they would not be taking up Trump’s offer of resettlement in the US.
“Our members work here, and want to stay here, and they are going to stay here,” said Dirk Hermann, chief executive of the Afrikaner trade union Solidarity, which says it represents around 2 million people. “We are committed to build a future here. We are not going anywhere.”
At the same press conference, Kallie Kriel, the CEO of the Afrikaner lobby group AfriForum, said: “We have to state categorically: We don’t want to move elsewhere.”
Trump’s move to sanction South Africa, a key US trading partner in Africa, came after he and his South African-born adviser Elon Musk have accused its Black leadership of having an anti-white stance. But the portrayal of Afrikaners as a downtrodden group that needed to be saved would surprise most South Africans.
“It is ironic that the executive order makes provision for refugee status in the US for a group in South Africa that remains among the most economically privileged,” South Africa’s Foreign Ministry said. It also criticized the Trump administration’s own policies, saying the focus on Afrikaners came “while vulnerable people in the US from other parts of the world are being deported and denied asylum despite real hardship.”
There was “a campaign of misinformation and propaganda” aimed at South Africa, the ministry said.
South African President Cyril Ramaphosa’s spokesperson said: “South Africa is a constitutional democracy. We value all South Africans, Black and white. The assertion that Afrikaners face arbitrary deprivation and, therefore, need to flee the country of their birth is an assertion devoid of all truth.”
Whites in South Africa still generally have a much better standard of living than Blacks more than 30 years after the end of the apartheid system of white minority rule in 1994. Despite being a small minority, whites own around 70 percent of South Africa’s private farmland. A study in 2021 by the South Africa Human Rights Commission said 1 percent of whites were living in poverty compared to 64 percent of Blacks.
Redressing the wrongs of colonialism
Sithabile Ngidi, a market trader in Johannesburg, said she hadn’t seen white people being mistreated in South Africa.
“He (Trump) should have actually come from America to South Africa to try and see what was happening for himself and not just take the word of an Elon Musk, who hasn’t lived in this country for the longest of time, who doesn’t even relate to South Africans,” Ngidi said.
But Trump’s action against South Africa has given international attention to a sentiment among some white South Africans that they are being discriminated against as a form of payback for apartheid. The leaders of the apartheid government were Afrikaners.
Solidarity, AfriForum and others are strongly opposed to the new land expropriation law, saying it will target land owned by whites who have worked to develop that land for years. They also say an equally contentious language law that’s recently been passed seeks to remove or limit their Afrikaans language in schools, while they have often criticized South Africa’s affirmative action policies in business that promote the interests of Blacks as racist laws.
“This government is allowing a certain section of the population to be targeted,” said AfriForum’s Kriel, who thanked Trump for raising the case of Afrikaners. But Kriel said Afrikaners were committed to South Africa.
The South African government says the laws that have been criticized are aimed at the difficult task of redressing the wrongs of colonialism and then nearly a half-century of apartheid, when Blacks were stripped of their land and almost all their rights.
 


African leaders urge direct talks with rebels to resolve DR Congo conflict

African leaders urge direct talks with rebels to resolve DR Congo conflict
Updated 09 February 2025
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African leaders urge direct talks with rebels to resolve DR Congo conflict

African leaders urge direct talks with rebels to resolve DR Congo conflict
  • communique at the end of talks urged the resumption of “direct negotiations and dialogue with all state and non-state parties'
  • Rwanda has blamed the deployment of SADC peacekeepers for worsening the conflict in North Kivu, a mineral-rich province in eastern Congo that’s now controlled by M23

KAMPALA, Uganda: Leaders from eastern and southern Africa on Saturday called for an immediate ceasefire in eastern Congo, where rebels are threatening to overthrow the Congolese government, but also urged Congo’s president to directly negotiate with them.
Congolese President Felix Tshisekedi, who attended the summit in the Tanzanian city of Dar es Salaam by videoconference, has previously said he would never talk to the Rwanda-backed M23 rebels he sees as driven to exploit his country’s vast mineral wealth.
A communique at the end of talks urged the resumption of “direct negotiations and dialogue with all state and non-state parties,” including M23. The rebels seized Goma, the biggest city in eastern Congo, following fighting that left nearly 3,000 dead and hundreds of thousands of displaced, according to the UN
The unprecedented joint summit included leaders from the East African Community bloc, of which both Rwanda and Congo are members, and those from the Southern African Development Community, or SADC, which includes countries ranging from Congo to South Africa.
Rwandan President Paul Kagame attended the summit along with his South African counterpart, Cyril Ramaphosa, who has angered the Rwandans by deploying South African troops in eastern Congo under the banner of SADC to fight M23.
Rwanda has blamed the deployment of SADC peacekeepers for worsening the conflict in North Kivu, a mineral-rich province in eastern Congo that’s now controlled by M23. Kagame insists SADC troops were not peacekeepers because they were fighting alongside Congolese forces to defeat the rebels.
The rebels are backed by some 4,000 troops from neighboring Rwanda, according to UN experts, while Congolese government forces are backed by regional peacekeepers, UN forces, allied militias and troops from neighboring Burundi. They’re now focused on preventing the rebels from taking Bukavu, the capital of South Kivu province.
Dialogue ‘is not a sign of weakness’
The M23 rebellion stems partly from Rwanda’s decades-long concern that rebels opposed to Kagame’s government have been allowed by Congo’s military to be active in largely lawless parts of eastern Congo. Kagame also charges that Tshisekedi has overlooked the legitimate concerns of Congolese Tutsis who face discrimination.
Kenyan President William Ruto told the summit that “the lives of millions depend on our ability to navigate this complex and challenging situation with wisdom, clarity of mind, empathy.”
Dialogue “is not a sign of weakness,” said Ruto, the current chair of the East African Community. “It is in this spirit that we must encourage all parties to put aside their differences and mobilize for engagements in constructive dialogue.”
The M23 advance echoed the rebels’ previous capture of Goma over a decade ago and shattered a 2024 ceasefire, brokered by Angola, between Rwanda and Congo.
Some regional analysts fear that the rebels’ latest offensive is more potent because they are linking their fight to wider agitation for better governance and have vowed to go all the way to the capital, Kinshasa, 1,600 kilometers (1,000 miles) west of Goma.
Rebels face pressure to pull out of Goma
The Congo River Alliance, a coalition of rebel groups including M23, said in an open letter to the summit that they are fighting a Congolese regime that “flouted republican norms” and is “becoming an appalling danger for the Congolese people.”
“Those who are fighting against Mr. Tshisekedi are indeed sons of the country, nationals of all the provinces,” it said. “Since our revolution is national, it encompasses people of all ethnic and community backgrounds, including Congolese citizens who speak the Kinyarwanda language.”
The letter, signed by Corneille Nangaa, a leader of the rebel alliance, said the group was “open for a direct dialogue” with the Congolese government.
But the rebels and their allies also face pressure to pull out of Goma.
In addition to calling for the immediate reopening of the airport in Goma, the summit in Dar es Salaam also called for the drawing of “modalities for withdrawal of uninvited foreign armed groups” from Congolese territory.
A meeting in Equatorial Guinea Friday of another regional bloc, the Economic Community of Central African States, also called for the immediate withdrawal of Rwandan troops from Congo as well as the airport’s reopening to facilitate access to humanitarian aid.