11:29 10.09.2015

Cabinet submits package of bills on debt restructuring to parliament

2 min read
Cabinet submits package of bills on debt restructuring to parliament

The Ukrainian government has registered a package consisting of three draft laws required for the successful finishing the restructuring of the country' foreign commercial debt to the Ukrainian parliament and a draft resolution on the provision of financial stabilization as a part of the implementation of the Extended Fund Facility program (EFF) of the International Monetary Fund (IMF) for Ukraine, according to a posting on the parliament's website.

The documents concern amendments to the Tax and Budget codes, the law on securities and the stock market regarding the issue of new instruments – value recovery instruments (VRI).

Earlier Finance Minister Natalie Jaresko said that these draft laws have been agreed with the Ad Hoc Committee of Creditors.

"They are of a technical character, but they are the substantial part of success of our joint efforts in debt restructuring and return of Ukraine to economic growth," she said.

She said that amendments to the Budget Code would settle the issue, servicing and repayment on VRI and the top-priority of restructured debts towards debts that did not take part in the proposed debt transaction would be defined, while amendments to the Tax Code contain particular rules for taxation of income of companies-borrowers under state secured restructured loans. The Finance Ministry told Interfax-Ukraine that the latter draft law set zero taxation for formal profit that would be recorded in the balance sheets of these companies after restructuring.

Jaresko said that after the adoption of the laws the conditions of debt restructuring are to be approved by holders of each Series of bonds included in the restructuring process as a separate legal procedure.

The government also submitted amendments to the 2015 national budget on the increase of social standards from September 1 instead of December 1, 2015, including using the funds saved thanks to the debt restructuring.

AD
AD
AD
AD
AD