12:03 22.10.2018

Ukrzaliznytsia seeks to restructure currency-pegged debt

2 min read
Ukrzaliznytsia seeks to restructure currency-pegged debt

The supervisory board of PJSC Ukrzaliznytsia jointly with the Infrastructure Ministry and the parliamentary committee for transport have said that it is necessary to restructure debts of the company for boosting the loans in national currency, according to a posting on the website of the Infrastructure Ministry after a meeting devoted to the operation of the company.

"Borrowing structured in the national currency, unlike fixed foreign currency loans, which now make up the majority of the company's loan portfolio, will increase the predictability of the costs of this borrowing, reduce currency risks, optimize the debt burden, which in turn will affect the quality of the loan portfolio and stabilization of the financial and economic state of the railway industry," the ministry said.

The supervisory board of Ukrzaliznytsia also agreed on the need to create a development strategy for the company that will take into account the provisions of the National Transport Strategy of Ukraine until 2030 and the Association Agreement between Ukraine and the EU; to conduct a structural reform of the company, dividing types of business into profitable and unprofitable; improve tender procedures.

In addition, the company's supervisory board intends to focus on the development of the Ukraine-EU rail link; intensify cooperation with local authorities to pay off debts for the transportation of categories of commuter passengers entitled with preferences; to consider the possibility of creating an independent Suburban Passenger Company, taking into account the European experience and the experience of other countries and to begin jointly with the Infrastructure Ministry to develop bylaws for the implementation of the new law on railway transport of Ukraine (involves drafting more than 50 bylaws).

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