Restructuring Ukraine

In June 2015, Ukraine found itself struggling with a volatile and devalued currency, dramatically diminished foreign reserves, and a projected financing shortfall of $40 billion. Ukraine’s new government sought to return the nation to stability following political uprisings in early 2014 and an ongoing military conflict with Russia including Russia’s recent annexation of Crimea. The International Monetary Fund (IMF)has agreed to provide funding to Ukraine, provided the country implement additional financial and economic reforms and restructure some of its $71 billion of sovereign debt. Newly appointed Minister of Finance, Natalie Jaresko, has proposed a 40% “haircut” to Ukraine’s $18 billion of Eurobonds, but creditors insist that any haircut is unnecessary. Can Ukraine get to a deal that will appease creditors and give it access to the IMF funding it so desperately needs?