Holders of Eurobonds of Ukraine have deferred payments – Ministry of Finance

11 August, 05:40 PM
Ukraine asked the holders of Eurobonds for a two-year postponement (Photo:NBU\Flickr)

Ukraine asked the holders of Eurobonds for a two-year postponement (Photo:NBU\Flickr)

Ukraine has received the necessary consent from holders of Eurobonds to defer payments and maturities on them for two years, reads a message from the Ministry of Finance of Ukraine on the Irish Stock Exchange, Interfax-Ukraine reported on Aug 11.

“Ukraine received and accepted consent for approximately 75% of the total principal amount of securities in circulation,” the ministry’s statement reads.

The ministry added that the condition that consent be obtained from the owners of at least 50% of each of the 13 Eurobond issues had been met.

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According to Reuters, the total value of the bonds on which payments are deferred is $20 billion. At the same time, the two-year delay will allow the Ukrainian budget to save $5 billion in payments on its external debt.

A day earlier, holders of Ukraine's GDP warrants approved its proposal to defer payments and revise the conditions for them.

As reported, on July 20 Ukraine proposed to holders of Eurobonds to defer all payments on them and maturities for two years starting Aug. 1, while maintaining their current rates of return.

At the end of this period, interest can be paid immediately or capitalized.

According to the Ministry of Finance, there are 13 issues of Ukrainian Eurobonds with a total nominal value of $17.26 billion and EUR 2.25 billion circulating on the market.

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