The Ministry of Finance proposes including Eurobonds issued by the Kiev, the state-owned banks Oschadbank and Ukreximbank, and the State Railway Administration (Ukrzaliznytsia) in the restructuring of Ukraine’s debts, the Interfax Ukraine news agency reports, citing an informed source.
According to the source, the state-owned banks and Ukrzaliznytsia will hold consultations with creditors on the terms of restructuring their debts as separate legal entities.
Recently, Finance Minister Natalie Jaresko said that the parameters for restructuring of Ukraine’s external debt would be announced on Friday, March 13. Negotiations with creditors are being held after the International Monetary Fund approved a new, four-year financial support program worth a total of USD 17.5 billion for the country.
According to information from the Ministry of Finance, Ukraine's debt on Eurobonds totaled USD 17.28 billion at the end of 2014, of which securities worth USD 1 billion guaranteed by the government of the United States are not included in the restructuring plan.
Of the total amount of direct and guaranteed debt of USD 69.81 billion as of the end of 2014, repayment of 14.9% is due in 2015 and 47.6% in the period of 2016-2019. The average maturity of the debts is 4.8 years.
As previously reported, Ukrzaliznytsia paid the latest, third coupon on its Eurobonds on 19 November 2014. It placed Eurobonds for a total of USD 500 million on the Irish Stock Exchange in May 2013 at the yield rate of 9.5% per annum. Coupons are paid every six months. The first coupon payment was made on 18 November 2013 and the second on 16 May 2014.