Thursday, August 27, 2015

Ukraine agrees foreign debt restructuring with creditors

Ukraine has agreed with creditors on writing off $3.8 billion out of its $19.3 billion debt, Ukrainian Finance Minister Natalia Yaresko said ahead of a government meeting on Thursday.

"It was decided to reschedule the repayment of the remaining $15.5 billion to 2019," she said.

Ukraine had taken efforts since March 2015 to agree with creditors on the restructuring of payments under its Eurobonds worth $20 billion.

The media reported early this week that the Ukrainian government and the creditors’ committee had agreed on writing off 20% of the Eurobonds’ value.

Initially, the Ukrainian side insisted on writing off twice as much, i.e. 40% of its debt. A 20% debt write-off means that Ukraine will save $3 billion on debt repayment.

If the Ukrainian government had not agreed with the creditors, Kiev could have imposed a moratorium in September on debt repayment. Kiev will have to repay Eurobonds worth $500 million already on September 23. This would have automatically worsened the prospects for Ukraine to repay its $3 billion debt to Russia in December. Russia has said on many occasions that Ukraine should redeem its $3 billion Eurobond on schedule.

Under an agreement with the International Monetary Fund (IMF), Kiev needs to save more than $15 billion over four years, including $5.2 billion this year.

Ukraine, which had been holding negotiations with foreign private creditors on restructuring bonds worth about $20 billion at their face value, warned on many occasions it might impose a moratorium on foreign debt repayment, if creditors failed to agree to restructuring, including a principal debt write-off.

In turn, creditors insisted that Ukraine would be able to comply with the debt burden parameters agreed with the IMF without the principal debt write-off and offered only a 10-year debt payment postponement.

Ukraine’s total state and state-guaranteed debt amounts to $70 billion today.

   [tass.ru]
  27/8/15

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1 comment :

  1. Fitch abaisse la note de la dette de l'Ukraine...

    Le ministère ukrainien des Finances a annoncé jeudi avoir obtenu un effacement de 20% de la dette d'Etat ukrainienne.

    L'agence internationale de notation financière Fitch a abaissé jeudi la note de la dette de l'Ukraine (IDR) en devises de CC à C, suite aux informations sur la restructuration de la dette de Kiev.

    Le ministère ukrainien des Finances a annoncé jeudi avoir obtenu une restructuration de la dette d'Etat ukrainienne. Une entente intervenue entre Kiev et ses créanciers privés après cinq mois de négociations, prévoit l'effacement de 20% de la dette, soit environ 3,6 des 18 milliards de dollars, ainsi qu'une légère hausse du taux d'intérêt (7,75% contre une moyenne de 7,2% précédemment) et un allongement de la période de remboursement jusqu'à 2019...............http://sptnkne.ws/DQw
    27/8/15

    ReplyDelete

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