Goldman Sees Ukraine Default in July as Debt Standoff Holds
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Ukraine will miss a bond coupon payment in July, setting off a default on about $19 billion of debt, as a standoff with creditors shows no sign of abating, according to Goldman Sachs Group Inc.
The government is unlikely to resolve a disagreement with its creditors on its debt-repayment plan in the coming weeks and will probably issue a moratorium before a $120 million coupon payment comes due on July 24, analyst Andrew Matheny wrote in a research note on Wednesday. Ukraine is giving creditors a few weeks to accept a proposal that includes a 40 percent writedown to principal before it imposes a debt moratorium, a person familiar with the talks said on June 19.