The Cabinet of Ministers introduced a moratorium on payments for Eurobonds of Ukraine
The Ministry of Finance was instructed to place the bonds of external state loans of Ukraine in 2024.
The Cabinet of Ministers of Ukraine used the right granted by the Verkhovna Rada and introduced a temporary moratorium on payments for Eurobonds of Ukraine, informs Finclub.
The relevant resolution No. 865 of July 31 “On the execution of transactions with state debt and state-guaranteed debt in 2024” was published on the official government portal.
The moratorium was introduced in connection with the need to carry out transactions with the state debt under the bonds of external state loans of 2018 of the first series. According to the resolution, from August 1, 2024, payments on these state debt obligations will be temporarily suspended. The duration of the moratorium is determined by Article 1 of the Law of Ukraine “On Peculiarities of Transactions with State, State-Guaranteed Debt and Local Debt and State Derivatives.”
In addition, the Cabinet of Ministers decided to transfer the state-guaranteed debt of the former “Ukravtodor” to the perimeter of the state debt and instructed to carry out its restructuring. This applies to the 2021 series of Eurobonds for a total of $700 million plus interest.
The Ministry of Finance is tasked with placing (issuing) bonds of external state loans of Ukraine in 2024 in accordance with the agreed conditions. These conditions provide for payments to creditors for consent in the amount of up to $246 million. Such measures are aimed at ensuring the financial stability of the country and effective management of the public debt.
The moratorium decision reflects the need for a balanced approach to the management of public debt and obligations to creditors. It also requires further negotiations with international partners and creditors to reach mutually beneficial agreements.
