By Derek Hunter
As Ukraine’s financial and security situation deteriorated, it became clear that it needed additional financial support, which it received through a $17.5 billion loan package from the IMF. However, the terms of the IMF’s package require Kiev to persuade private creditors to accept $15.3 billion in write-offs or deferred payments over four years. Nonetheless, in ongoing negotiations private creditors like Franklin Templeton have refused to take a loss on their Ukrainian bonds and only offered to extend the maturity of the bonds but not write-off any principal payments. As the New York Times reports, Ukraine’s finance minister launched the latest salvo in these negotiations when he warned in a series of interviews in London that private creditors should not “hold out” against a settlement.