ISDA committee admits CDS payment on Ukrainian eurobonds

The committee expects that a moratorium on payments on external debt obligations announced by Ukraine will come into force on October 3 - after a ten-day grace period for the repayment of eurobonds worth $500 million with a maturity of up to September 23, 2015. If these expectations are realized, the committee says that it will need to hold an accelerated auction (within which the amount of payments on CDS will be determined), after which the final beneficiaries of Ukrainian sovereign and government-guaranteed bonds will be able to participate in the debt operation implemented by the country. The committee expects that a pre-auction will be held on October 6, and the final auction will be held on October 8, 2015. Deliverable obligations will be calculated on all sovereign eurobonds, including 'Russian' bonds worth $3 billion, and state-guaranteed eurobonds of state enterprise Financing Infrastructure Projects.