Cabinet approves list of eurobonds to be restructured – finance ministry
The Cabinet of Ministers of Ukraine at a meeting on Saturday approved a list of loan participation notes, the deals on changing the conditions of borrowing for which will be signed and included eurobonds of state banks, Ukrzaliznytsia and Kyiv City in the list.
The instructions were given to the participants of the debt restructuring process.
"On April 4, under a proposal of the Finance Ministry at a cabinet meeting a resolution defining the range of Ukraine's debt operation carried out as a part of the Extended Fund Facility (EFF) of the IMF [International Monetary Fund] passed on March 11 was approved," reads a Saturday posting on the Finance Ministry's website.
The legal deals on changing the conditions of borrowing are to ensure the implementation of three quantitative liabilities of Ukraine to IMF to achieve concrete debt figures: saving on foreign payments under state debt liabilities guaranteed by the state and debts of economic entities of the public sector of economy worth some $15 billion over the period of the implementation of the IMF program; maintenance of the state debt/GDP ratio at no higher than 71% of GDP until 2020; and support of general needs in financing of the budget for debt transactions at average 10% of GDP (no more than 12% of GDP a year) in 2019-2025.
For the achievement of these three tasks the deals on changing the conditions of borrowing are to include all foreign debt of the public sector appeared before February 28, 2014 in the form of state foreign debt; state-guaranteed foreign debt; quasi-sovereign foreign debt, which includes eurobonds of state banks, Ukrzaliznytsia and Kyiv City.
"The deal on each financial tool, included in the range, should provide for its contribution in the achievement of three tasks of the debt operation," reads the report.
The ministry said that under the IMF program talks with creditors are to be finished before the first revision of the program or in May 2015.
The full list of securities is an attachment to the cabinet resolution and it will be posted on the website of the Ukrainian government soon.
Earlier Ukrainian Finance Minister Natalie Jaresko said that 29 securities will be included in the restructuring plan.
