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Ukraine's state-run railway will not seek coupon, principal cut - FinMin
KIEV, APRIL 18
(Reuters) - Ukraine's state-run railway company Ukrzaliznytsia will seek only a maturity extension of its $500 million eurobond and not a principal or coupon reduction in debt restructuring talks with bondholders, the Finance Ministry said on Saturday.
The railway company's bonds due in 2018 are to be restructured under an International Monetary Fund-backed (IMF) overhaul of Ukraine's sovereign and state-guaranteed debt to plug a $15 billion funding gap.
The Finance Ministry has made clear it will seek to cut the face value of Ukraine's sovereign debt. But earlier in April it hinted it would not press for such a reduction for the bonds of two sub-sovereigns, state-run Ukreximbank and Oschadbank -- a fact it confirmed earlier this week.
At a presentation about restructuring plans in Washington to bondholders late on Friday, Ukraine said Ukrzaliznytsia debt would be treated in a similar way.
"Including these entities (Oschadbank, Ukreximbank, Ukrzaliznytsia) is essential to meeting Target 1 of the debt operations. However, each entity will undergo a separate process targeting its specific situation," the finance ministry said
Target 1 foresees only a maturity extension of the bond repayment and does not envisage reductions of the principal and coupon.
Ukrainian officials have set themselves a June deadline to complete debt talks under a $40 billion funding package backed by the IMF of which the restructuring forms a part.
But many analysts are sceptical the planned timeframe is realistic. (Reporting and writing by Natalya Zinets and Richard Balmforth; Editing by Mark Potter)
Den Kurs hat das aber nicht befeuert, die steht immer noch um die 40
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