(MENAFN) Ukraine has finally concluded a deal with its largest group of creditors to ease repayments on its USD18 billion debt, which will therefore support an economy worn by the cost of fighting with pro-Russian separatists.
The creditors, led by Franklin Templeton and including other asset managers, accepted a small increase in the coupon on most of the bonds to 7.75 percent and extended each maturity by four years.
To mention some of the ways the deal will help Ukraine, it would lower the payments due over the next four years by USD11.5 billion, which will correspondingly free up funds to help the war effort in the east.
However, a dispute immediately took shape with Russia, one of Ukraine's main creditors which hold USD3 billion of Ukrainian debt that falls due in December, mainly because it needs foreign currency.
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