Ukraine's talks with GDP-linked debt holders break down for second time

BY Reuters | ECONOMIC | 11/06/25 12:08 PM EST

Nov 6 (Reuters) - Talks between Ukraine and holders of its GDP warrants have broken down for a second time in six months, the government said on Thursday, adding another delay to its hopes of restructuring the $3.2 billion worth of bond-like instruments.

"The parties have jointly decided to terminate the restricted discussions without reaching final agreement on the terms of a potential restructuring of the warrants," the government said in a statement. (Reporting by Marc Jones. Editing by Mark Potter)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

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