: :inin Kyiv (EET)

Cabinet approves restructuring of UAH 229 bln domestic public debt

Ukraine`s Cabinet of Ministers has approved the issue of domestic government loan bonds worth UAH 229 billion, or US$8.7 billion, with redemption in 2025-2047 to exchange them for previously issued bonds with a maturity in 2017-2030 and a nominal value of UAH 221.6 billion ($8.4 billion), with unpaid coupon income of UAH 7 billion ($319.8 million), according to the resolution adopted at a government meeting on Wednesday, May 24.

According to the document adopted without amendments and further discussion, the annual interest rate on new bonds will amount to the inflation rate for the last 12 months plus 1.5 p.p.

Moreover, in case deflation kicks in, the annual interest rate will be 1.5%.

As UNIAN reported, the total portfolio of government bonds of the National Bank of Ukraine (NBU) was estimated at UAH 380 billion.

The reprofiling is aimed at reducing the burden on the state budget by changing the government bonds repayment terms and servicing in the NBU portfolio.

NBU Governor Valeria Gontareva said earlier that the profit of the National Bank of Ukraine for 2017, subject to transfer to the state budget in 2018, would depend on the reprofiling of domestic government bonds in the regulator`s portfolio.

Prime Minister Volodymyr Groysman also claimed that following the reprofiling the government would be ready to allocate UAH 15 billion to improve the country`s road infrastructure.


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