The Economist: Ukraine has just one month to avoid default

Ukrainian President Volodymyr Zelensky - Photo: AFP/TTXVN

In an article published on July 1, the British newspaper The Economist said that Ukraine could default as early as August if Kiev fails to reach an agreement with creditors to restructure its debt.

According to The Economist , if Ukraine defaults, this could undermine investor confidence in Western obligations, be disastrous for Ukraine's post-war recovery, and could complicate Ukraine's future access to financial markets.

The current problem for Ukraine does not seem easy because previously Bloomberg News reported that Kiev failed to reach an agreement with creditors in the first round of negotiations on restructuring a $20 billion debt.

Specifically, Ukraine has proposed a deal with creditors to reduce debt by 60% of its current value, while creditors believe 22% is more reasonable.

If a debt restructuring agreement is not reached, Ukraine will have two options: arrange an extension of the debt moratorium or default.

Source: https://tuoitre.vn/the-economist-ukraine-chi-con-mot-thang-de-tranh-vo-no-20240702073859685.htm