Ukraine suspends sovereign debt servicing as part of debt restructuring
Ukraine's Cabinet of Ministers has announced that it is about to launch procedures to restructure and partially write off of sovereign debt, which will involve the suspension of transfers as of September 23 to repay and service sovereign and state-guaranteed debt, which includes sovereign eurobonds issued in 2005-2013 and Fininpro's eurobonds.
"The Finance Ministry and the Infrastructure Ministry shall temporarily halt payments on the debts in accordance with the list enclosed for a period established by Article 1 of the Ukrainian law on transactions with sovereign, state-guaranteed debt and local debt," according to Cabinet directive No. 978-r of September 22, published on the governmental website.
The law allows the government to suspend each of the debt payments "until conclusion of such a transaction (transactions) and changes in the terms of the relevant loan with respect to creditors."
The document says that the government supported the Finance Ministry's proposal that such transactions should be finalized before December 1, 2015.