The Ministry of Finance welcomes the successful conclusion of the negotiations between Ukreximbank and its ad hoc creditors' committee for the reprofiling of its three Eurobonds maturing in 2015, 2016, and 2018, totaling approximately US$1.5 billion. This will result in total savings to Ukraine’s balance of payments of up to US$1.5 billion for the 2015-2018 period.
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 acceptable outcomes in the framework of its current debt restructuring negotiations. We call on Ukreximbank creditors to support the proposed terms during the forthcoming consent solicitation process that will start early June.
The reprofiling of the Ukreximbank bonds 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
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.
The Ministry aims to complete the debt restructuring operation by the first review of the IMF-supported program scheduled for June in order to provide support for the disbursement of the second tranche.
No comments:
Post a Comment