LONDON (Reuters) - A panel of investors on Friday determined Ukraine had triggered a restructuring event after a two-year sovereign debt freeze, and a default insurance known as Credit Default Swap (CDS) should be payed.
The Credit Derivatives Determinations Committee (CDDC) said that its members voted 'yes' to a question to determine whether a "Restructuring Credit Event" occurred with respect to Ukraine and that a CDS auction should be held, according to a statement on its website.
The committee still hasn't decided on the timing of the auction.
There are just over $220 million worth of CDS contracts linked to Ukraine’s debt, according to Depository Trust & Clearing Corporation (DTCC) data.
Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS) International and JPMorgan Chase (NYSE:JPM) Bank are some of the committee members who voted "yes" to the question.
The country's international creditors backed last week Kyiv's request for a two-year freeze on almost $20 billion of its sovereign debt.