Ukraine not to revise public debt restructuring terms

Monday, May 23, 2016 - 14:30 (EEST) Section: Latest news

Ukrainian Minister of Finance Oleksandr Danylyuk says the government will not revise the terms of Ukraine`s public debt restructuring deal with partial write-off that was carried out in 2015.
”Currently, I do not see, and I myself belonged to the investment community, how to revise these terms. Other instruments have to be available and they exist, but as for the revision [of the restructuring terms], I do not see either the possibility, or the expediency,” the finance minister told 112 Ukraine TV channel.
Danylyuk underlined that it is necessary to make responsible decisions and be aware of their consequences for the country`s future. ”The decision was made, that`s it,” the finance minister said.
Danylyuk did not give his assessment of the restructuring deal carried out under the leadership of ex-minister Natalie Jaresko, saying it would be irrelevant to do so.
”The restructuring [operation] has been held, and this is Ukraine`s position. We have agreed on such terms with foreign partners,” he said.
As UNIAN reported earlier, on August 27, 2015 Ukraine and the creditors` ad hoc committee reached an agreement on the restructuring of public debt totaling $18 billion. The restructuring involves a complete write-off of $3 billion, deferral of payments under the principal debt for four years, as well as the establishment of a single 7.75% interest rate for all bonds. The majority of holders of Ukraine`s eurobonds to be restructured agreed to the general terms of the restructuring of Ukraine`s debt, except Russia. Russia refused to discuss restructuring on general terms, insisting that the debt was sovereign rather than commercial one.
To finalize the debt restructuring process the Cabinet of Ministers approved the terms of the issue of new eurobonds to the tune of $11.95 billion maturing on September 1, 2019-2027. The derivatives were issued to a conditional amount of $2.9 billion, and payments on them would be effected only if Ukraine achieved certain positive macroeconomic indicators.