On October 4, 2015, an official technical default was announced in Ukraine. The decision was taken at a meeting of the International Swaps and Derivatives Association (ISDA).
Investment funds and global banks admitted that a moratorium imposed by the Ukrainian government on external debt repayments was a technical default. The moratorium was placed by Ukrainian Prime Minister Arseniy Yatsenyuk at the end of the previous month.
On September 22, Kiev should have paid 500 million dollars to its creditors, but did not fulfill its external debt obligations. The next day, the ISDA commission unanimously declared the Ukrainian default on condition that a final decision will be made after the 10-day grace period when the moratorium of Ukraine’s authorities comes into force.
Standard & Poor's downgraded Ukraine's long-term foreign currency sovereign credit rating to ‘Selective Default’.
On September 28, the International Swaps and Derivatives Association decided that a pre-auction, within which the amount of payments on CDS will be determined, will take place on October 6.
