Legal Hiccup Threatens Ukraine Debt Forgiveness

By Evan Abrams

In the wake of political instability in eastern Ukraine, the country has experienced a sharp economic downturn and is having trouble meeting is foreign debt obligations. The IMF has led an international bailout effort, but according to Euro News the efforts have been muddied by an unexpected legal debate. The critical question is whether Eurobonds held by Ukraine should be considered bilateral sovereign debt or a standard private bond issuance. The answer may determine whether Russia could avoid any restructuring that would affect other private debtors.