Washington, D.C., May 18, 2015 - The Institute of International Finance today issued the following statement on discussions between the Ukrainian government and the bondholder committee. '

"On May 12, 2015, Ukraine's Ministry of Finance posted a statement in its website referring to the IIF Principles of transparency and disclosure, in the context of its discussion with the bondholder committee about a restructuring of its international debt obligations."

"We take this opportunity to reiterate the Principles for Stable Capital Flows and Fair Debt Restructuring. We believe that adherence to the Principles by both the sovereign debtor and its creditors has contributed importantly to achieving an orderly and fair debt restructuring with a high rate of participation. In particular, we would like to highlight a few key Principles or recommendations consistent with the Principles."

• "If a creditor committee is formed, it should...coordinate across affected instruments and with the affected investor classes...; be a forum for the debtor to present its economic program and financing proposals; collect and analyze economic data; collect, evaluate and disseminate creditor inputs on financing proposals; and generally act as a communicating link between the debtor and the creditor community. To fulfill these tasks, it has been market practice for a bondholder committee to be transparent about its membership."

• "In the debt restructuring process, an early discussion is necessary between the representative private creditor committee and the sovereign debtor, in close consultation with the official sector, on the multi-year macro-economic framework and objectives, including the broad fiscal policy targets and the underlying outlook for output growth and public debt under alternative assumptions on the debt restructuring. Such a discussion is important in facilitating an effective voluntary debt restructuring agreement in a fair burden sharing, thus prompting high private sector participation, restored market access, renewed output growth and debt sustainability."

• "It is important that the sovereign debtor respect the principle of non-discriminatory treatment of its different creditor classes."

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The Institute of International Finance is the global association of the financial industry, with close to 500 members from 70 countries. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. IIF members include commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks. For more information visit www.iif.com.

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