Ukrainian debt holders brace for restructure

Investors could see a 40% haircut on the bonds, but it’s never that simple

Ukraine’s capital Kyiv: the country has sold war bonds to help fund its ongoing conflict with Russia

How much money are the holders of Ukrainian government bonds about to lose? The country must make a $900 million foreign debt payment in September, yet it faces a funding gap of $5 billion every month, the country’s finance minister Serhiy Marchenko has said.

Losses are inevitable. The size of those losses is negotiable. “If you’re a hedge fund and you hold bonds in a country that’s getting restructured, you’re going to get hosed,” says a former banker.

The conflict engulfing Ukraine has