KIEV, Ukraine
Ukraine has escaped a possible technical default after making a $120-million Eurobond payment due Friday, the country's Finance Ministry has announced.
The next payment, worth $500 million, is due Sep. 23, according to the statement.
Ukraine has been negotiating with foreign bondholders to restructure $23 billion of its $70 billion sovereign debt, including a $3 billion Eurobond bought by Russia at the end of 2013, on which Kiev made a $75 million interest payment on June 22. Ukraine is required to repay the full amount by the end of 2015.
The International Monetary Fund is hoping that Kiev can reach an agreement with its foreign creditors ahead of the Fund's board meeting next Friday, when it is expected to release $1.7 billion in bailout funds.
This would be the second installment of the four-year $17.5 billion support package awarded to the country in March.
