Ukraine Just Issued $1 Billion Bonds Backed By The US Taxpayer & And yes, this is what it’s all about
Submitted by Tyler Durden on 05/14/2014 http://www.zerohedge.com/news/2014-05-14/ukraine-just-issued-1-billion-bonds-backed-us-taxpayer- *UKRAINE $1B 5Y NOTES LAUNCH AT +28
They're gonna need moar... (and this does not include Gazprom)
Oh and Ukraine says "thanks America"... (as WSJ reports)
But - there is a catch..."The $1 billion loan guarantee that (U.S. Agency for International Development) will implement will help the government of Ukraine access capital at reasonable rates and manage the transition to a prosperous democracy," Mark Feierstein, assistant administrator at USAID, said in April.
"The guarantee assures investors of full repayment of principal and interest."
The deal follows similar guarantees provided for bonds issued by Tunisia in 2012 and Jordan last year.
Bank of America Merrill Lynch said Tuesday that Ukraine's bondholders could face losses if separatists in the country's southeastern regions successfully gain independence.
The bank said a breakup of the country could potentially force the International Monetary Fund to tear up Ukraine's current $17 billion aid package and trigger a debt restructuring program that would hit private investors. An IMF spokesperson said the fund is monitoring the situation.
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