BofA Sees Sri Lanka as Model for Ukraine as Debt Deadline Nears

With time running out for investors and Ukraine’s government to agree on a solution for $20 billion of outstanding bonds when a freeze on repayments ends in August, Bank of America strategists are pointing to Sri Lanka as a possible model.

Strategists Vladimir Osakovskiy and Merveille Paja said a restructuring of Ukraine’s debt should include the issuance of new bonds linked to the nation’s economic performance, which would help determine adjustments in its debt levels and amounts owed. A similar plan in Sri Lanka allows for higher payments on debt should the economy outperform certain assumptions following completion of an ...