Reprofiling may be best option for Ukraine

摘要

Despite continuing to insist its bondholders take a haircut, Ukraine may be better off acceding to creditors' demands and extending bond maturities without touching the instruments' principal. Doing so would not only enable Ukraine to sign a quick restructuring deal with its creditors, it would also allow the country to insert aggregated collective action clauses into the US$23bn of debt earmarked for treatment - with the added benefit of making any subsequent restructuring far easier. "I have always felt that extension was the best way of doing this as a prequel to further restructuring," said one sovereign restructuring expert. "It [inserting aggregated CACs] would be a good reason alone to do an extension first as part of a two-part deal."