11:20 25.12.2014

Debt restructuring isn't on agenda – Finance Ministry

2 min read
Debt restructuring isn't on agenda – Finance Ministry

Hammering out a joint, concerted approach on the forming of volume and tools for external financial assistance is a top priority for Ukraine now, while debt restructuring is not on the agenda today, First Deputy Finance Minister Ihor Umansky said.

"Debt restructuring, a change in the structure of repayments and debt servicing load aren't subjects of negotiations nowadays," he said at a briefing at the Cabinet of Ministers in Kyiv on Wednesday.

"It's [too] early to speak and raise this issue in public, and I would prefer not to comment until a joint, concerted approach on the forming of volume and tools of assistance to Ukraine has been hammered out," he said.

He also stressed the need to begin preparations for a donor conference.

As reported, the draft national budget for 2015, which was prepared by the government, suggests restructuring government domestic loan bonds of the National Bank of Ukraine only: they may be swapped for new government domestic loan bonds in same volume with a circulation of up to 20 years, and at an interest rate of up to 5% per annum. This will allow Ukraine to save UAH 9.9 billion on debt servicing.

The Finance Ministry says government domestic loan bonds are currently in circulation with a maximum term of circulation of up to 20 years. The nominal yield on long-term bonds varies between 9.25% and 14.3% per annum.

At the same time, experts point to the high probability of restructuring Ukraine's foreign debts. Ukraine's current credit ratings from international rating agencies signal this, experts say.

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