The parliament has approved the restructuring of the Antonov state aircraft manufacturing enterprise’s debt on the state-guaranteed bonds it issued in 2009. The relevant draft law (No. 5244) was approved by 285 votes on 20 October, the Interfax Ukraine news agency reports.

The document stipulates that the Antonov state aircraft manufacturing enterprise will repay the debt to the state in equal quarterly installments over 10 a period of years, starting in the first quarter of 2017.

From the date of introduction of this law, penalties will not be levied on the debt amount and the fines as well as the penalties already accrued as of that date will be written off. The law will enter into force on the day after the day of its publication.

According to the explanatory note to the document, the debt of the Aviant plant (which is part of the Antonov state aircraft manufacturing enterprise) amounted to UAH 1.9 billion in 2009. To prevent the plant from going bankrupt, the Cabinet of Ministers allowed it to issue bonds for UAH 858 million. The plant placed bonds worth UAH 578.906 million, which allowed it to restructure its debt and recover assets worth about UAH 1.3 billion that had previously been used as debt collateral.

The Antonov state aircraft manufacturing enterprise’s debt to the state budget amounted to UAH 1.272 billion (the nominal value of the bonds, charges levied on coupons, and fines) as of 1 August 2016.