Ukraine chooses to default on loan payment

[Robert]

And demands 20% write off of debt:

Ukraine’s economy has struggled over the past few years and the country has negotiated repayment terms with creditors, but not with Russia. In November, the Russian president, Vladimir Putin, proposed a debt restructuring saying Moscow would be willing to agree to payments of $1bn a year between 2016 and 2018.

Ukraine turned down the offer, saying it cannot legally offer Russia a better deal than the one it has negotiated with other debt holders. That deal has seen countries accept a 20% writedown of their Ukrainian bond holdings, a move which has cut Ukraine’s sovereign debt from $19bn to $15.5bn.

When the inevitable Russian response arrives, it'll be amusing to watch the anti-Russian spin the press puts on it.

http://www.theguardian.com/world/20...wed-to-russia-by-deadline-says-prime-minister