17:34 18.12.2015

Moratorium on 'Russian' eurobond repayments introduced from Dec 20 – Ukrainian Cabinet

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Moratorium on 'Russian' eurobond repayments introduced from Dec 20 – Ukrainian Cabinet

Repayments on Ukraine's $3 billion eurobonds bought out in late 2013 by the Russian National Welfare Fund are being temporarily suspended starting from the maturity date, December 20, 2015, according to a Cabinet order N1312 of December 18, which was published on the website of the Ukrainian government.

"To introduce a temporary suspension of payments towards the repayment and servicing of the sovereign debt and the state-guaranteed debt on the bonds as per the enclosed list, starting from the date stated in the list," the document reads.

The document sets later introduction dates for moratoria on the repayments on Ukravtodor's state-guaranteed loans: for the 2006 loan, from March 30, 2016; the 2009 one, from April 15, 2016; and for the 2011 loan, from January 26, 2016.

With respect to the state-guaranteed loan taken by Pivdenne Design Bureau in 2011, repayments are suspended from May 19, 2016.

Under the document, such temporary suspension on debt repayments will remain in place until a restructuring deal (deals) is (are) reached and relevant borrowing terms are changed with respect to all creditors, as is provided by the relevant law of May 19, 2015,.

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