Cabinet proposes abolishing deadline of moratorium on payments for restructuring 'Russian' eurobonds
The Ukrainian government has proposed abolishing the deadline of the temporary moratorium on payments on foreign commercial debts, including two-year eurobonds worth $3 billion issued in December 2013 and redeemed by the National Welfare Fund of Russia, which according to the law dated May 2015 will expire on July 1, 2016.
"To seek further ways for restructuring these bonds and foreign borrowings of the legal entities of the public economic sector, secured by state guarantees, the financial advisor to the Ministry of Finance, Lazard Freres SAS, recommended a temporary suspension of payments to repay and service the public debt, as well as the publicly guaranteed debt," reads an explanatory note to government bill No. 3677, registered in the parliament on December 18.
The government noted that such a moratorium could be lifted at any time in case of implementing the agreements with the holders of eurobonds maturing in December 2015 and the creditors of state-owned companies under state guarantees.
"Taking into account that the period of validity of the legal basis for such a temporary suspension of payments expires on July 1, 2016, a new draft law that abolishes the deadline of the moratorium to expand its validity is submitted to the Verkhovna Rada for consideration before the expiry of the legal grounds," reads the report.