Starting November 9, NPC Ukrenergo will temporarily suspend payments on its debt obligations under green sustainability bonds, the company said.
“This technical solution will be in effect until the planned debt restructuring is completed in the coming months. “Ukrenergo, together with the government of Ukraine, is taking all necessary measures to reach an agreement with bondholders in the near future,” the company said on Facebook on Wednesday.
Earlier, the Experts Club information and analytical center released a video about the defaults of countries and businesses – https://youtu.be/gq7twYrWuqE?si=4cgn_L9RC0Nm0xl5
American Tupperware Brands Corp., known for its plastic food storage containers, has filed for bankruptcy.
“Over the past few years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” said Tupperware CEO Lori Ann Goldman.
The company’s shares have fallen by 75% since the beginning of 2024.
Tupperware initiated bankruptcy proceedings in accordance with Article 11 of the US Bankruptcy Code. The company needs court approval to continue operations and speed up the process of selling the business while protecting its brand.
Tupperware was founded in 1946 by chemist Earl Tupper, who developed airtight plastic containers to help American families preserve food and save on costs. The company’s products are distributed through direct sales by Tupperware consultants around the world. The so-called “Tupperware parties” – events for cooking together using the company’s products – have also gained popularity.
In recent years, however, Tupperware has been experiencing serious difficulties, facing a decline in demand for its core products, increased competition, and a lack of liquidity, the WSJ notes.
Recently, the Experts Club information and analytical center released a video on the history of defaults and a table of countries that may face the risk of default in the medium term.
Watch the video on the Experts Club YouTube channel for more details: https://youtu.be/gq7twYrWuqE?si=KneYUbl2rNOUIGTM
In its new video on the YouTube platform, the Kiev-based information and analytical center Experts Club has published a rating of countries with the highest probability of sovereign default. The ranking considered both economic and political factors that could lead states to default.
As Maxim Urakin, the founder of Experts Club, PhD in Economics, noted, the current economic situation in the world is alarming.
“The world economy is facing unprecedented challenges and many countries are on the verge of financial collapse. Under such conditions, it is crucial to understand which states are at the greatest risk of default in order to take appropriate measures,” he emphasized.
State default is a situation when a country cannot fulfill its debt obligations to creditors. According to Maxim Urakin, default can have catastrophic consequences for the country’s economy and its citizens.
“Default is not just a technical event. It is a tragedy for millions of people who may lose their jobs, their savings and even access to basic social benefits. That is why we monitor the economic situation in various countries so closely,” Urakin added.
The Experts Club 2024 ranking of countries with the highest probability of default includes Argentina, Lebanon, Sri Lanka and several other countries already facing serious economic problems. These countries are characterized by high levels of external debt, economic instability and political crises.
Experts Club also identified several countries that are at risk in the medium term. Among them are Argentina and Venezuela, which are already facing economic instability and high levels of debt, as well as Greece and Italy, which are dependent on external creditors.
|
Experts Club Rating |
Country |
Current international rating |
| 1. | Argentina | CCC- |
| 2. | Ghana | in default |
| 3. | Sri Lanka | in default |
| 4. | Lebanon | in default |
| 5. | Zambia | in default |
| 6. | Pakistan | CCC |
| 7. | Mozambique | CCC |
| 8. | Ukraine | CCC |
| 9. | Ethiopia | CCC |
| 10. | Cameroon | CCC+ |
| 11. | Bolivia | CCC+ |
| 12. | Burkina Faso | CCC+ |
| 13. | Suriname | in default |
| 14. | Tunisia | CCC |
| 15. | Egypt | B- |
| 16. | Nigeria | B- |
| 17. | El Salvador | B- |
| 18. | Honduras | B- |
| 19. | Laos | B- |
| 20. | Venezuela | in default |
“We see that countries like Argentina and Venezuela continue to be on the verge of default due to internal economic instability and external pressures. Also of concern is the situation in Greece and Italy, which are highly dependent on international loans. The risk of default remains high in these countries,” commented Urakin.
Special attention this year is paid to Lebanon, which, according to the economist, is “in a state of political and economic crisis, with extremely high debt to GDP.” This makes the country particularly vulnerable to a possible default.
Maxim Urakin also elaborated on the factors that could lead to default. Among them, he emphasized the high level of external debt relative to GDP, economic instability and dependence on external financing.
“Countries with debt-to-GDP ratios above 100% are particularly vulnerable. Lebanon, Cyprus and Greece are examples. Economic instability and political crises in countries such as Argentina, Venezuela and Pakistan also increase the risk of default,” he explained.
Dependence on external financing is another significant factor.
“Countries that depend on external loans to cover budget deficits, such as Spain and Italy, could face difficulties if conditions in international financial markets deteriorate,” Urakin added.
In a commentary on the rating, Maxim Urakin noted that the consequences of a default for a country and its citizens can often be devastating.
“For government agencies, default means restricted access to international financial markets, lower credit rating and the need for painful economic reforms. For citizens, it turns into inflation, devaluation of the national currency, rising unemployment and lower living standards,” the expert explained.
Urakin also emphasized that default may lead to the growth of social discontent and political instability, which may aggravate the situation in the country. He also assured that Experts Club will continue to closely monitor the economic situation in the world and provide timely relevant data to help countries and investors to minimize risks and avoid defaults.
You can learn more about defaults and the presented rating from the video on the YouTube channel of Experts Club:
You can subscribe to the Experts Club channel by clicking here:
The number of company defaults in January-February this year in the world reached 29 – the maximum since 2009, according to S&P Global.
Including in the U.S. the number of corporate defaults amounted to 17, in Europe – eight.
The global average for the same period in 2010-2023 slightly exceeds 16.
S&P attributes the rise in defaults to weak consumer demand, rising wages amid labor shortages and high interest rates.
NJSC Naftogaz Ukrainy has announced a default on its eurobonds due to the government’s refusal to agree on payments on them.
“The deadline for payments to holders of Naftogaz Eurobonds expired on July 26 without payment taking place,” the company said in a press release published on Tuesday evening.
Naftogaz said that the Ukrainian Cabinet of Ministers had earlier on July 21 issued order No. 625-r obliging Naftogaz officials to seek Cabinet approval before executing any transactions related to the company’s eurobonds.
In its official letter to the government, Naftogaz indicated the availability of the necessary funds in its accounts to cover eurobond payments. Naftogaz officials also detailed the possible negative consequences for the company and for the country in the event of a hard default on eurobond payments.
The company said that in response, the Cabinet of Ministers failed to provide permission for Naftogaz to fulfill its payment obligations to eurobond holders for either the 2022 issue or the 2024 issue.
“The government has therefore defaulted on Naftogaz eurobond payments. As this failure to meet its eurobond obligations effectively deprives Naftogaz of access to international capital markets, the Cabinet of Ministers as the responsible party now assumes full responsibility for raising the funds necessary for the import of natural gas for the 2022-2023 heating season,” the company said in the press release.
Ukraine will start preparing a new program of cooperation with the International Monetary Fund (IMF) in July, Ukrainian President Volodymyr Zelensky has said.
The press service of the President of Ukraine reported on Tuesday that Zelensky during a meeting with large- and medium-sized businesses in Germany confirmed the cooperation of Ukraine with the IMF, the World Bank and the European Bank for Reconstruction and Development (EBRD).
“We are starting an agreement with the IMF, we will prepare a new program in July, there will be no default,” the president of Ukraine said.
He also said that, as president, he would not influence the courts or the banking system.
As reported, Deputy Head of the Presidential Administration Oleksiy Honcharuk said in an interview with NV.Business ezine that Ukraine is preparing for a possible launch of the new three-four-year program of cooperation with the IMF at the end of 2019.
On June 13, 2019, IMF Spokesperson Gerry Rice said in Washington that the IMF expects the completion of parliamentary elections in Ukraine to continue negotiations on further cooperation with the country. Rice recalled that in May the IMF mission worked in Kyiv, which had initial discussions with Zelensky.
The IMF Executive Board, following a meeting on December 19, 2018, approved a new program of cooperation with Ukraine under the Stand-By Arrangement. The amount of the 14-month program is equivalent to SDR 2.8 billion, or about $3.9 billion. Some SDR 1 billion (about $1.4 billion) was provided immediately, while the remaining funds will be provided based on the results of the program reviews in 2019.
The IMF mission worked in Ukraine in May, but left without recommendations on the provision of the new tranche. Head of the mission Ron van Rooden said that the IMF mission is ready to return to Kyiv after the parliamentary elections and the formation of a new government. The IMF team found that fiscal and monetary policies remain on track.
