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Ukraine debt deal agreed with creditors

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By Euronews  with Bloomberg
Ukraine debt deal agreed with creditors

<p>After five months of talks with creditors Ukraine has agreed to a <a href="http://www.bloomberg.com/news/articles/2015-08-27/ukraine-reaches-restructuring-deal-with-20-writedown-to-bonds">debt restructuring deal</a> as it attempts to <br /> get the war-torn economy back on track.</p> <p>The deal includes a 20 percent write down of around 16 billion euros worth of Eurobonds.</p> <p>The agreement also delays redemption rates by up to four years and sets interest at 7.75 percent on maturities according to statement from the Finance Ministry.</p> <p>Moscow says that Ukraine owes 4.4 billion euros to Russian company Gazprom alone as it pays more for the gas than it gets from Ukrainian consumers, whose bills are subsidised. </p> <p>Some analysts are predicting Ukraine’s economy to fall by by over eight percent this year.</p>