MoF updates current status of debt restructuring
In a presentation of the MoF’s update of the current situation of the debt deal
to investors and financial analysts in Washington, DC, as required by the
EFF program, Ukraine Finance Minister Natalie Jaresko reiterated the three
main targets: a US$15.3bn decrease of debt repayments over the next four
years, lower the debt-to-GDP ratio to 71% by 2020, and maintain the gross
financing need at or below 10% of GDP. Moreover, Ukreximbank must
restructure its debt to meet the IMF’s first target, which is to decrease debt
repayments in 2015-2018. The primary concern of investors, however, was
whether the Russian Eurobond would be included in the restructuring.
Investment implications: According to Ukraine Finance Minister Natalie
Jaresko, all debt holders (as listed in clearing systems) were sent
proxies to participate the debt restructuring negotiations and the MoF
is waiting to hear from any other bondholders before they begin
discussions. Currently, the MoF has not yet held official talks with
investors, especially in regard to the Russian bond, as they have not
yet identified themselves, a situation which prevents negotiations. The
MoF intends to begin official negotiations to conclude an agreement by
the time the EFF is up for revision in June.
Taras Kotovych, Kiev, +38044 2200120 ext.724
Ukreximbank assures no haircut on its 2015 Eurobond and
full payment of its coupon
In regard to the current status of the debt restructuring for Ukraine's
bondholders, Ukrainian Minister of Finance Mrs. N. Yaresko and
Ukreximbank's Chairman Mr. O. Hrytsenko have confirmed that there will be
no haircut, the coupon will be set at the current level, and the US$31.4m
coupon payment will be paid to bondholders if the resolution for the three
month extension passes on April 27.
The quorum to adjourn the meeting was lowered from 2/3 to 1/3 with a
required 75% of those present at the meeting to vote in favor for the
resolution to pass. Should this occur, Ukreximbank will try to negotiate a 10-
year extension that will enable Ukraine to meet the IMF program’s first target
of its balance of payments objective.
Mykhaylo Demkiv, Kiev, +38044 2200120 ext.723
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