Govt annuls decision on reprofiling of govt domestic loan bonds in NBU's portfolio

14:41, 09.08.2017 1 min read

Ukraine's Cabinet of Ministers at a meeting on Wednesday annulled a decision on reprofiling of government domestic loan bonds in ownership of the National Bank of Ukraine (NBU).

"The Finance Ministry and the NBU have not reached the decision. We counted on this money, but unfortunately, we have not received it. The decision [to annul the reprofiling of bonds made on May 24, 2017] is made," Ukrainian Prime Minister Volodymyr Groysman said at the meeting.

As reported, the government of Ukraine late May 2017 approved the reprofiling of government domestic loan bonds owned by the National Bank of Ukraine (NBU) with a total nominal volume of UAH 377.9 billion, which implies the restructuring of this debt until 2047 and its equal repayment of about UAH 13 billion per year. The issued government domestic loan bonds in ownership of the NBU are worth UAH 151.12 billion.

The interest rate on new bonds is set at the level of inflation for the last 12 months plus 1.5 percentage points. In case of deflation, interest income will be paid at a rate of 1.5% per annum.