$3 Billion for Ukraine to Go Straight to…Russia | Video | TheBlaze.com:
"That first installment was $3 billion—in U.S. dollars, as dictated by the terms of the deal—issued on Dec. 24. It carries a lenient interest rate considering the shattered state of Ukraine’s economy: a coupon of only 5 percent, payable semiannually on June 20 and Dec. 20. It is short-term debt, maturing on Dec. 20, 2015.
Startlingly, the notes are governed by U.K. law and subject to the exclusive jurisdiction of British courts. And most crucially, there is an odd and crucial clause in the bonds that has a direct impact on European and American taxpayers, as CNBC learned through a review of the bond agreement:
—Paragraph 3 (b) under Covenants:
(b) Debt Ratio
So long as the Notes remain outstanding the Issuer shall ensure that the volume of the total state debt and state guaranteed debt should not at any time exceed an amount equal to 60 percent of the annual nominal gross domestic product of Ukraine."
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