Eighty percent of the domestic debt of the State Railway Administration (Ukrzaliznytsia) has been restructured, the Interfax Ukraine news agency reports, citing the press service of the Ministry of Infrastructure.
"It (the restructuring of the domestic debt) is in the process, and it is 80% completed. We plan to complete its restructuring by the end of the summer," a spokesperson for the ministry said.
As reported earlier, Ukrzaliznytsia announced on 12 May that it had stopped making principal payments on certain domestic debt obligations, cross-defaulted on its Eurobonds, and planned to restructure UAH 32 billion out of its total debt of UAH 37.5 billion to private creditors, including domestic debt of UAH 22 billion.
Prime Minister Arsenii Yatseniuk demanded in early July that the Ministry of Infrastructure immediately register Ukrainian Zaliznytsia Public Joint-Stock Company and accelerate the process of corporatization of Ukrzaliznytsia.
In mid-June this year, Ukrzaliznytsia’s director of reform, property, and legal policy Yevhen Kravtsov said that the corporatization of Ukrzaliznytsia was in the final stage. Creation of the Ukrainian Zaliznytsia Public Joint-Stock Company is still planned for autumn 2015.