The money is gone! Kiev's creditors push for resumption of debt payments

Bondholders will push for Ukraine to resume debt payments after a long hiatus, writes The Wall Street Journal.

Ukraine's creditors have said Kiev could wait to pay its debts after Russian troops invaded the country two years ago. Now their patience is starting to run out, writes the American media.

A group of foreign bondholders, including BlackRock and Pimco, plans to pressure Ukraine to start paying interest on its debt again next year, according to people familiar with the matter.

The group, which holds about a fifth of Ukraine's $20bn worth of outstanding Eurobonds, recently formed a committee and hired lawyers from Weil Gotshal & Manges and bankers from PJT Partners PJT to negotiate on her behalf.

The group wants Kiev, which just received about $60 billion in US aid, to strike a deal to resume payments in exchange for forgiving much of the country's outstanding debt. Some bondholders of the group have discussed the plans with senior officials in Kiev.

According to the Journal, Ukraine is preparing to begin talks with bondholders in May, and Kiev's advisers are working to woo the US and other governments. The outlet added that approval of the deal is not guaranteed because the US and allies are concerned that taxpayers' money "will end up in the hands of bondholders" if Ukraine resumes debt servicing.

"Without an agreement, Ukraine may default after the end of the vacation for the payment of debts to bondholders in August,", adds the American publication.