On April 4th the Cabinet of Ministers of Ukraine at the proposal of the Ministry of Finance adopted a Resolution approving the perimeter of Ukraine’s debt operation under the IMF Program approved on March 11.
The Cabinet of Ministers approved the list of related external debt instruments that will be included in the debt operation and provided guidance to all participating institutions.
The forthcoming debt operation has three quantified targets set out by the IMF:
1. To generate $15.3 bln savings in public sector financing during the IMF Program period
2. To bring the public and publicly guaranteed debt/GDP ratio under 71% by 2020
3. To keep the budget's gross financing needs at an avarage of 10% of GDP in 2019-2025
In order to reach those three targets, the debt operation must include all Ukrainian debt instruments incurred before February 28th 2014 andrepresenting:
a. Sovereign external debt
b. Sovereign-guaranteed external debt
c. Sub-sovereign external debt, namely debt of state banks, State Railways Company and the City of Kyiv
Restructuring of each financial instrument included in the perimeter has to contribute to the overall objectives of the debt operation. However, given the importance ofUkreximbank and Oschadbank for the banking system and the economic recovery of Ukraine, the restructuring of their financial instruments will be subject only to the IMF Program target on liquidity ("target 1")
As per IMF Program negotiations with creditors must be finalized by 1st review (in May 2015)
The full list of securities to be included in the debt operation is attached to the Resolution and will be published on the website of the Cabinet of Ministers of Ukraine shortly.
No comments:
Post a Comment