Ukrainian President Volodymyr Zelensky signed Law No. 11396, allowing the government to suspend payments on external debt until October 1. This is evidenced by the data on the website of the Verkhovna Rada.
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The document also allows the government to transfer the state-guaranteed debt of the former Ukravtodor to the “perimeter” of the state debt and restructure it (we are talking about a series of Eurobonds for 2021 for a total of $700 million + interest).
Let us recall
The Cabinet of Ministers adopted the corresponding bill on July 18.
The Ministry of Finance wrote that Ukraine managed to reach an agreement in principle with the Committee of Ukrainian Eurobond Holders on debt restructuring.
The restructuring agreement will provide for the existing Eurobonds to be exchanged for a package of new Eurobonds with a nominal reduction in the cost of debt by 37% at the initial stage and a reduction in the net present value of the debt by about 60%.
After the restructuring is completed, the maturity date of the Eurobonds will be extended: the first repayment in the amount of $1.172 billion will take place in 2029. By comparison, without the restructuring, the principal amount of $9.381 billion (excluding capitalized interest) would have been due between 2024 and 2029.