The Finance Ministry of Ukraine is still against the idea of restructuring government domestic loan bonds, as most of the securities are in bank portfolios, mainly state-run banks, Finance Minister of Ukraine Natalie Jaresko has said.

"Just if it goes from one pocket to another, it doesn't help us resolve this," she said at a video conference during the Ukrainian Investment Day, organized by Concorde Capital Investment Company in New York on Friday.

Jaresko said that the additional capitalization of banks would be required if the restructuring is approved, which would not be in line with the benchmarks of the IMF Extended Fund Facility (EFF) and would require more financing than foreseen in the EFF ($40 billion).

The minister said this concerns both government domestic loan bonds pegged to foreign currency and the national currency.

She said that negotiations on the restructuring of Ukraine's commercial debt being, held since March 2015, have touched $23 billion out of $70 billion of the total debt.

According to the National Bank of Ukraine (NBU), as of July 19, the volume of government domestic loan bonds totaled UAH 480.14 billion, including UAH 352.96 billion in the NBU's portfolio (73.5%), UAH 82.31 billion in banks (17.1%), UAH 23.24 billion with nonresidents (4.8%) and the rest of the bonds are mainly held by national joint-stock company Naftogaz Ukrainy and the Individuals' Deposit Guarantee Fund.

Since early 2015, the NBU's government domestic loan bond portfolio grew by 11%, that of nonresidents – by 7.9%, while the bank's portfolio fell by 11.9%.