Ukraine Defaults.....

Ukraine 1998, 2000
In 1998, the Government of Ukraine issued a decree whereby all anonymous "non-person" saving accounts in
foreign currency were “frozen”. The only recourse for account holders was to identify themselves and "transfer"
the accounts to local-currency accounts.
Since independence, Ukraine has remained dependent upon imported energy and foreign loans.
Approximately, US$3 billion of these foreign loans came due in 2000. The IMF's US$ 2.6 billion extended fund
facility (EFF) was suspended in September 1999, and the World Bank postponed all its lending to Ukraine in
October 1999.
On 28 February 2000, Ukraine's Finance Ministry confirmed that it had missed the scheduled coupon
repayment for its 16 percent DM-nominated Eurobonds, which were to mature in 2001. With over US$13
billion in foreign debt, Ukraine had already announced in January 2000 that it would miss the scheduled
repayment for dollar-nominated 16.75 percent bonds and offered to include them in an exchange proposal.
Bondholders were offered seven-year coupon amortization bonds which would be issued by Ukraine and
nominated in the euro or U.S. dollar. In euro, the bond coupon amounted to 10 percent, while in U.S. dollars
the coupon represented 11 percent with no grace period.

The bulk of the debt was amortized in the new euro bonds every six months, with the first six months as a
grace period. The average term of the bonds was 4.5 years. While exchanging, investors were able to choose
the currency in which the bonds would be denominated.
By the end of March 2000, over 90 percent of holders of Ukrainian government bonds had agreed to the
restructuring and accepted new bonds with a face value of approximately 50 percent of the debt they replaced

https://www.moodys.com/sites/products/DefaultResearch/2007100000482445.pdf