The Ministry of Finance welcomes the successful
conclusion of the negotiations between Oschadbank and its Ad-Hoc
Creditors' Committee for the reprofiling of its two Eurobonds
maturing in 2016 and 2018 and its Subordinated Loan maturing in
2017, totaling US$1.3 billion.
The results of the negotiations are fully in
line with the objectives of the IMF-supported program and demonstrate Ukraine's
commitment to finding collaborative and good faith outcomes in the
framework of its ongoing debt restructuring negotiations. We call
on Oschadbank creditors to support the proposed terms during the
forthcoming consent solicitation process that will start in the coming days.
The reprofiling of the two Oschadbank Eurobonds
and Subordinated Loan maturing in 2017 will contribute to the first target
of the IMF supported program. As agreed with the IMF, the Government has
engaged in negotiations with international commercial creditors as part of its
debt operation to achieve the three following goals:
1) Generate US$15.3
billion savings in public sector financing during the four-year IMF program
2) Bring the public and
publicly guaranteed debt/GDP ratio under 71% of GDP by 2020
3) Keep the budget’s
gross financing needs at an average of 10% of GDP in 2019–2025; maximum of 12%
of GDP in any given year.
This agreement will result in total savings to
Ukraine’s balance of payments of US$1.3 billion for the 2015-2018 period.
It follows the similarly successful reprofiling ofUkreximbank’s Eurobonds
on 26 May, which also contributed to the first of the IMF-agreed targets.
We look forward
to continuing negotiations with the debtholders of
other instruments included in the perimeter of Ukraine's debt
operation. The Ministry of Finance underlines that the sovereign debt
restructuring will also need to reduce debt levels and debt service to
meet the three IMF-agreed targets.
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