July 1, 2015 / 4:56 PM / in 4 years

UPDATE 1-BTG Pactual fund CEO "pretty confident" of Ukraine debt deal without haircut

(Adds detail, background on debt talks)

MONACO, July 1 (Reuters) - The chief executive of one of Ukraine’s major creditors said on Wednesday he was “pretty confident” Ukraine would reach a deal that did not involve a writedown in the face value of its sovereign bonds.

Ukraine is in talks with a creditor group led by Franklin Templeton to plug a $15.3 billion funding gap, but negotiations had appeared deadlocked over Kiev’s insistence on such a writedown.

Steve Jacobs, chief executive of BTG Pactual Global Asset Management, said a proposal involving changes to the coupons and maturity dates of Ukrainian debt was “workable for the creditors and I think is workable for the country, so actually I am pretty confident that something can happen there.”

Ukraine is being advised by Lazard, the creditor group by Blackstone.

“Some of the suggestions coming from the country side and the Lazard side are highly constructive  let’s see what happens,” Jacobs told Reuters on the sidelines of a funds conference. “We are quietly confident.”

Ukraine held three-way talks with the creditor group and the International Monetary Fund in Washington on Tuesday. Neither side has yet said if any headway was made in negotiations.

Jacobs said a BTG representative had attended the talks, but he had not yet heard details of the meeting.

The IMF said the meeting focused on the objectives of the debt operation and the IMF’s macroeconomic forecasts and urged both sides to reach a deal. Agreeing on a debt restructuring is one of the conditions Kiev must meet under an IMF-led $40 billion bailout programme.

Creditors say Ukraine can meet the debt-reduction targets required by the IMF without a writedown in the principal of the bonds. (Reporting by Carolyn Cohn,; Writing by Carolyn Cohn and Alessandra Prentice; Editing by Larry King)

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